One often hears that Americans don’t save enough, but why is that? For a few, it’s probably the consequence of spending too much, conspicuously, to keep up appearances. For most people, though, that’s not true: the percentage of lavish, status-conscious spenders is a small part of most communities.
One of the reasons Americans don’t save enough is that government taxation and spending discourages savings.
See, from CNBC’s Closing Bell with Maria Bartiromo, a discussion of savings in which Cato’s Dan Mitchell contends government bears significant responsibility for a low savings rate.
For Mitchell’s position in greater detail, see Big Government Cripples Incentives to Save, Promotes Risky Culture of Immediate Gratification.