Reid Cramer in The Christian Science Monitor
Reid Cramer has a piece up in today's Christian Science Monitor. In it, he makes the case for strengthening the American economy through increased levels of household saving--fostered by the automation of savings.
"When the recession took hold in 2008, it seemed that this problem (of low savings rates0 might self-correct, since people spend less when faced with job loss or diminishing home assets. True to form, savings soared, topping off at 6.2 percent in May - the highest since 1995. Yet by August, the rate had fallen to a mere 3 percent.
That's a signal that we shouldn't assume a new, more responsible era has already dawned. The recession may have converted many Americans to thrift in the short term, but we shouldn't squander the opportunity to put in place protections that can help families weather future downturns and create a strong economy for the long term."
In particular, he makes the case for AutoSave and for a universal system of children's savings accounts. It's a good piece, and timely given the recent remarks by Secretary Geithner on the importance of savings.