Graph and download economic data for Net saving as a percentage of gross national income (W207RC1Q156SBEA) from Q1 1947 to Q2 2023 about national income, GNI, savings, gross, percent, Net, income, GDP, and USA.
Hmmm, maybe, but I’m not sure I understand. There’s no issue with mean vs median because there taking net savings and gross income, if I can take the words at face value. So all the savings of every person in the country, rich or poor, added up and divided by all three sun of all the income of everyone in the country. It seems like the one percenters would skew this the other way because they have massive savings with little actual income.
I’m not sure I understand the driving factors here.
I thought I saved my reply, but I don’t see it. The savings rate is by no means a driving factor, just a side effect. As income moves to financial assets designed to avoid taxes, it also makes it invisible to the savings rate. Doubling this effect is that it also selects for income that’s more constrained by expenses, because those that do report their full income, are those that can’t afford to hide it.
Ah, the damage over time of widening inequality.
Hmmm, maybe, but I’m not sure I understand. There’s no issue with mean vs median because there taking net savings and gross income, if I can take the words at face value. So all the savings of every person in the country, rich or poor, added up and divided by all three sun of all the income of everyone in the country. It seems like the one percenters would skew this the other way because they have massive savings with little actual income.
I’m not sure I understand the driving factors here.
I thought I saved my reply, but I don’t see it. The savings rate is by no means a driving factor, just a side effect. As income moves to financial assets designed to avoid taxes, it also makes it invisible to the savings rate. Doubling this effect is that it also selects for income that’s more constrained by expenses, because those that do report their full income, are those that can’t afford to hide it.
Interesting, thanks