Ferrari Mailing List: Re: Barstool Economics

[Todd Walke (racertod]

Charles wrote:

> Our nation already has one of the lowest savings rates in industrialized
> nations.

        Our low or negative savings rate is mostly a myth.  The Feds use 
methods to deduce that figure that don't reflect reality of today.
        They simply use national figures to do this calculation: Income - 
Federal taxes - Expenditures = Savings.  Doesn't include capital gains, 
401K income, etc.  Nor the increased value of your home.  But they do 
include all your taxes, even on income they don't include in the calculation.
        Examples:  If you're retired and getting income from your 401k or 
IRA, that income is not counted but your expenditures are.  Bought $1000 of 
Microsoft at their 1986 IPO, that is counted - just sold it for $5 million 
- that income is not counted, taxes on the $4,999,000 capital gain - that 
is counted.
        Our un-biased (cough, cough) mainstream media just blindly repeats 
this myth without any fact-checking because it matches the general disdain 
for the USA and capitalism that is the center of "Progressive Left" (aka 
Marxism with a smiley face) thought.

<http://seekingalpha.com/article/36867-us-savings-rate-based-on-outdated-methods-of-calculation>
<http://www.usatoday.com/money/perfi/general/2006-03-01-savings-cover-usat_x.htm>


Todd
Seattle,WA
'86 GTI, Red of course. (exciting racey car) 268,000 miles
'01 Golf TDI, silver.   (new work car)       185,000 miles
'87 Golf, Polar Silver. (retired work car)   654,000 miles <- Gone to a new 
home :(
http://www.pureluckdesign.com <-Ferrari & VW stuff