Sunday, August 28, 2016

Why Do Americans Have Such High Incomes and So Little Savings?



Americans have more disposable income than nearly every other country on earth. The few exceptions include a handful of northern Western European states and some small city states like Monaco.  Even when accounting for government benefits and taxes, Americans still have more income available to spend than almost anyone else.

As this measure from the OECD shows, the US has a median disposable income at $29,100, behind Luxembourg, Norway, and Switzerland. It's well ahead of of large European states like Germany and France, which show a median disposable income levels of $24,200 and $23,300, respectively.......

There are cultural reasons behind working more, of course, but one reason that Americans work more and longer is that Americans really like to spend money. And lots of it.  As a result, Americans don't accumulate as much in terms of measurable wealth. They have high incomes, but that's not the same thing as accumulating wealth.....To Read More...

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