Want to Save the Economy? Invest.

You�ve heard that a rebound can only occur when we return to our spend-crazy ways. But perhaps there�s another way.

Is Obama promoting an alternative here? Invest, invest, invest? Could be. His pronouncement coincides this week with news that Americans have increased the amount of money they’re saving. The Commerce Department reported on Monday that personal savings rose to 5% of incomes. It makes sense. We keep hearing about how consumers aren’t spending—and how the economy is suffering for it. It’s something economists call the “paradox of thrift”. That is, the more people save during a recession, the more it hurts the overall economic well-being. The theory is that when people don’t spend, business revenues suffer, which then causes businesses to cut back by laying off workers or cutting salaries.

Saving money is clearly what’s best for anyone in this downturn. Having an emergency fund of a few months worth of wages makes good sense. Single-handedly saving the nation by purchasing an even bigger plasma TV isn’t our job, but maybe there’s another way we can help. Ed Fredericks, a professor of finance at Pepperdine University’s Graziadio School of Business and Management, is one of the few people who see a win-win in our new American propensity to save. He believes that “now and for the foreseeable future, an increase in savings is good for the country. This will reduce the deficit through lower imports. As imports decline and savings increase, our capital markets should benefit as surplus savings will go into investments (stocks). This investment capital will go to businesses and entrepreneurs promoting economic activity … ”

Just as I was thinking about all these things this morning, I received an e-mail from a B.E. reader, part of which posed a rather provocative question: Should African Americans invest in stocks in order to prop up the market and make President Obama look good? I would ask the question differently. Is there a way to help the national economy while doing what’s best for myself and my family? Perhaps President Obama has already offered an answer.

What do you think?

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  • Caecilia Key

    Of course we need to continue to keep spending to keep the economy going! Does it make sense that we can maintain the status quo if all of a sudden we all shut down our pocketbooks and horde our cash? The balance is a delicate one at best! We have to take ownership of our part in this puzzle.

  • william robinson

    And we need to stop listening and taking the excuses for that behaviour period it makes us seem weak and ignorant we know what is right and wrong lets start acting like it and take action and make people pay for that behaviour and we should start with the estell richardson case because i am telling the truth about my ordeal infact check it out on gus puyer on your search engine just punch it in and change.org has been most gracious for allowing me to tell the truth about what happen to me in that facility before her death estell richardson and after check it out

  • william robinson

    Oh by the way dont forget about karl rove they call him in the bush adminatsration the get this archtect personally i think its a playoff but thats what they call him i think the gops sent him as a little distraction from some issues but thats just my opinion i just know how they treated me in that facility before and after that lady died and if the gop has something to do with the treatment i have received since i have been free they all should be locked up for obstruction of justice seriously

  • william robinson

    Oh i forgot to say this gaurds at cca worked at the school the girl went to meharry as security i geuss as parttime work this i knew way before i was a inmate there coincidence huh also i got people trying to stop my employment i currently work as a marketing director for a gameplandvds i help premote other rappers so maybe you can understand why these slanders and its more than women beater way more can disrupt business which i know is the perpose and republicans have shown the ones in bushes favor they are good at character assination they even tried it with our president thats there forte right out of the karl rove book so they say

  • manuel babayaro

    Thoughtful piece. I’m wondering if this new American austerity is a temporary thing, or whether it will be lasting. Once the economy improves, will people go back to mindless spending?

  • william robinson

    Whoever reading this want believe this but when i was looking over the estell richardsons report i noticed something odd they mentioned a guy named hawkins i know hawkins he sat there this gaurd named baptist beat me up with leg shackles hancuffs connected to a weight belt and screamed at first but just let it happen i just found out they used his testimony he was a key factor listen hawkins is a lier put him on a lie detector about what happen to me that day with baptist and keep the integrity of it and you will see hawkins is a lier he is white kind of about 59 maybe a little taller i know him me is a lier get this blog to a district attorney reopen that case

  • william robinson

    Let me say this to these people have 65 jails with connections i assume to police departments and such and even the feds and the cia via bush or his father i have been followed ever since i have been talking about this situation they have in my opinion corrupted whole towns the police with lies about me in different states they have made my life right now a little difficult but to tell the truth on this matter makes up for all of that these people are apparently the police i figure and the jails have the ability to pass rumors and those rumors be taking as the truth when really its just get back by some gaurd or gaurds in this situation and i realize a lot more people will get in trouble for these lies they are telling so can you imagine the lies flying around about me all started by the same people that can get in trouble the only problem is people take that stuff seriously anyway hopefully someone will qeustion these people and get to the bottom of that ladies murder the rest i can handle thankyou for giving me the forum

  • william robinson

    I wanted to add this little tid bit just for your and anyone that reads my many blogs they have a thing the police call keeping the criminal code and they use it to justify many acts they do like phishing not fishing but phishing which is illegal fishing is when a cop or someone from any law enforcement agencie including the fbi cia or up or down the ladder has no reason to look in your background but does it anyway he obtains a warrant to do it most of the time threw illegal means this type of behaviour is most often seen in retailation type circumstances and it causes many people alot of grief but it comes from them falling back on one thing and that is your not telling them of some suppose it criminal activity they got wind of and your name supposedly came up and that is how they obtain warrants to surveillance even if some of the time it is pure retalailition most law enforcement people that are unethical want to do dirt but they more than a regular criminal dont want to get caught and they have a sure fire system that insulates them most of the time and it parellels the suppose it criminal code ironicaly it is called the blue code cops dont tell on cops being a rat or informant for a cop is taboo but extremely dangerous and that aint movie stuff my reason for bring this stuff up should be self evident bush and his adminastration have the same dont tell unless it doesnt really get them in trouble exspecially bush and cheney and possibly even george bush seniour the gops ways parallel the criminal code but threw phishing cops bring in your family friends and everybody else you come in contact with in trying to make a case most of the time they know is fraudelent and its a excuse to have contact with individuals they usually wouldnt have contact with and in that contact is the problem because what they say they do on paper may be different then what they say and do in person they control the recorders on interviews they control the whole contact situation its basically a trust thing in reference to how there behaviour is when they are supposedly investigating a crime and having contact with people around you my point they can tell them anything before they start recording interviews and sometimes they do bush and his adminastration catered to cops good and corrupt alike because the cia and the feds atf homeland security and any other branch of law inforcement must deal with the cops they are the ground people they deal with civilians each and everyday security as well you cant forget about them either because they most of the time dont wear a gun they most security gaurds that do the job for years wont to be in the police department seriously and will do anything to be in it loyal soldgiers and they are the non chalant guys you think hay what do they have to win our lose in making a comment about somebody a person might even take there word as truth or law on the street and remember these people have family members police feds cia homeland security atf all of them have family members dedicated to looking out for there family member right or wrong in there actions so even if president barack does know of my struggle i am sure finding out whos doing what is not going to be easy bushes fathers job and cheneys was to make people dissappear thats part of there job also sometimes wipe them of the planet but not have them missed at the same time i know people have heard about bushes assination squad that didnt even answer to the cia this is real stuff i am talking about and believe i am recieving real reprisals but that just motivates me more to get the truth out oh another reason i mentioned this stuff is the gaurds at cca during the time estell richardsons murder would work very closely with the police very closely it was rumored whitlow a gaurd that worked there wanted to be a cop but was just a meter maid so he started giving information on inmates in the facility whether it was true or false alot of the gaurds there doubled like that and if you had problems with them and got out of jail they had the ability to have the feds watching you or the police or probably even the cia but dont look for any paper work there good at destroying that stuff hay they got it honest look at bush and his adminastration

  • william robinson

    Those badges carry weight but they also carry responsibility and a outh to not abuse your power

  • william robinson

    I wanted to add once again that change.org has been helpful in me getting out my story so i am trying to give back and i am doing it like this he needs help on his petetion the place to find it is look for mitch stewart he is running the petetion apparently you can find the petetion at barackobamainfo.com or just go to vibe magazine go to blogs and go to harlem nights and the editors blog and i put the address right there i cant remember it right now and i have little time to figure it out but the president needs our help now

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