who's been saving since NAFTA ?

Discussion in 'Economy' started by Widdekind, Apr 28, 2012.

  1. Widdekind
    Offline

    Widdekind Member

    Joined:
    Mar 26, 2012
    Messages:
    813
    Thanks Received:
    35
    Trophy Points:
    16
    Ratings:
    +35
    "M2 - M1" represents "savings accounts" in banks. Before NAFTA, US citizens were drawing down their "savings accounts", as measured by "M2 - M1" per capita, inflation adjusted (via CPI):

    [​IMG]
    If Americans have been spending more, on cheaper foreign imports, since NAFTA; then who has been saving more 'real' (inflation-adjusted) Money, into "savings accounts", since c.1993 ?
     
  2. Mr. H.
    Offline

    Mr. H. Diamond Member

    Joined:
    Aug 19, 2009
    Messages:
    44,104
    Thanks Received:
    9,264
    Trophy Points:
    2,030
    Location:
    A warm place with no memory.
    Ratings:
    +15,387
    I'd like to know why a 6 pack of Corona costs $8.
     
  3. Middleoftheroad
    Offline

    Middleoftheroad Active Member

    Joined:
    Jul 17, 2011
    Messages:
    589
    Thanks Received:
    53
    Trophy Points:
    28
    Location:
    Texas
    Ratings:
    +54
    Because its a horrible beer that is sold to party drinkers, who will pay the outrageous price.
    Also because it is imported, from New York.
     
  4. iamwhatiseem
    Offline

    iamwhatiseem Gold Member

    Joined:
    Aug 19, 2010
    Messages:
    14,818
    Thanks Received:
    3,114
    Trophy Points:
    260
    Location:
    Virginia
    Ratings:
    +6,098
    Because it is sold by people want to be seen drinking it...I mean while else would someone drink that swill? :wtf:
     
  5. iamwhatiseem
    Offline

    iamwhatiseem Gold Member

    Joined:
    Aug 19, 2010
    Messages:
    14,818
    Thanks Received:
    3,114
    Trophy Points:
    260
    Location:
    Virginia
    Ratings:
    +6,098
    No kidding...if they think it is cool to drink a "Mexican" beer than why not drink a real one like Pacifico. Not my favorite...but it is a far cry better than Corona.
     
  6. Middleoftheroad
    Offline

    Middleoftheroad Active Member

    Joined:
    Jul 17, 2011
    Messages:
    589
    Thanks Received:
    53
    Trophy Points:
    28
    Location:
    Texas
    Ratings:
    +54
    I don't think they think it is cool because its "mexican" I think that they think it is cool because the lime. Some people that don't like beer can handle corona with a little salt and lime.
     
  7. Mr. H.
    Offline

    Mr. H. Diamond Member

    Joined:
    Aug 19, 2009
    Messages:
    44,104
    Thanks Received:
    9,264
    Trophy Points:
    2,030
    Location:
    A warm place with no memory.
    Ratings:
    +15,387
  8. Widdekind
    Offline

    Widdekind Member

    Joined:
    Mar 26, 2012
    Messages:
    813
    Thanks Received:
    35
    Trophy Points:
    16
    Ratings:
    +35
    reported financial data are not inconsistent with "stereotypes" of "hard-working Latinos" saving earnings to send home, since NAFTA
    [​IMG]
    net Income from US to foreign nationals
    net change in personal savings accounts
     
  9. Widdekind
    Offline

    Widdekind Member

    Joined:
    Mar 26, 2012
    Messages:
    813
    Thanks Received:
    35
    Trophy Points:
    16
    Ratings:
    +35
    Before NAFTA, rising interest-rates attracted more of Americans' money into savings accounts until 1980, after which falling interest-rates pushed more of Americans' money into spendable checking accounts, until NAFTA. But after NAFTA, interest-rates continued falling, yet savings accounts increased. Perhaps changing demographics accounts for the change, such that immigrant workers save even at much lower interest-rates than native workers. If so, then whereas Federal Reserve Board Chairman Alan Greenspan said that immigrant workers sell their labor for less in wages, so too they lend their money (to banks, as savings) for less in interest-rates. Both benefit the US economy, cutting costs of products on the wage side, and costs of credit (re-loaned from banks) on the interest-rates side -- implying that immigrant workers are more economically competitive in both labor & credit markets. (Anybody taking taxes in transfer payments is costly & economically anti-competitive.)

    [​IMG]
    red = bank prime interest-rate percent divided by ten
    blue = fraction of US bank deposits in "savings" vs. "checking" accounts​
     

Share This Page