I was caught off guard this weekend when reading an article about how high savings rates in Japan have had a devastating effect on that nation’s economy. According to Hiroko Tabuchi of the New York Times,
“The economic malaise that plagued Japan from the 1990s until the early 2000s brought stunted wages and depressed stock prices, turning free-spending consumers into misers and making them dead weight on Japan’s economy.”
This article ultimately warns Americans of the dangers of saving their hard-earned money. I was taken aback when I fully realized the predicament our nation is in. How can we continue living in a society that rewards consumers for taking unnecessary risks? And yet, how can we revive our economy without consumer-driven growth?





