Your cash outflow equals your cash inflow. But what does that mean?
Does it mean we're not saving? Well what if you're making a return on what you've already saved? And what if you're buying an asset - - principal payments on your mortgage don't count as savings but they add to your net worth...
Does it mean "it's harder to get by than it was a generation ago?" That would presume that all of the outflows are necessary. The previous generation got by without HDTV, cable, cell phones, PCs, high speed internet. 70% of the households own their homes, rather than 60% a generation ago - and houses are twice as big.
Real median family income is up 32% since 1979. Yet we're spending all of it. We're AMERICANS. We see stuff, we want it, we buy it. If median family income were up 320%, we'd still spend all of it. I'm fine with that - it's the engine that drives the economy, an it makes our investments go up.
But it does NOT mean "it's harder to make ends meet."
2007-02-05
05:46:02
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8 answers
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asked by
Anonymous
in
Politics