– Keynesian Knightmare: US Savers Outnumber Spenders By Record Numbers (ZeroHedge, April 21, 2014):
“Janet, we have a problem,” is the resoundingly loud message from the latest Gallup poll of Americans preference (and relative enjoyment) of “saving” vs. “spending”. It seems, despite all the hoop-la and exuberance about an ‘economic recovery’ that is pent-up due to weather but about to break out to escape velocity, the majority of Americans continue to enjoy saving money more than spending it, by 62% to 34%. The 2014 saving-spending gap is the one of the widest since Gallup began tracking Americans’ preferences in 2001. How long before a discussion of negative rates re-appears as the rich and powerful Oz-ians contemplate the latest effort to ‘change’ people’s mass psychology…
As Gallup concludes, while this question does not measure actual spending or saving, it provides important insight into the psychology of the American consumer’s approach to money.
At this point, the trend suggests that Americans have shifted their mindset significantly more toward the view that saving is the more enjoyable behavior, not spending.
Reality 1 – 0 Fed/Keynes