who's been saving since NAFTA ?

[Widdekind]

"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):

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 ?

 

[Mr. H.]

I'd like to know why a 6 pack of Corona costs $8.

 

[Middleoftheroad]

I'd like to know why a 6 pack of Corona costs $8.

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.

 

[iamwhatiseem]

I'd like to know why a 6 pack of Corona costs $8.

Because it is sold by people want to be seen drinking it...I mean while else would someone drink that swill?

 

[iamwhatiseem]

I'd like to know why a 6 pack of Corona costs $8.

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.

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.

 

[Middleoftheroad]

I'd like to know why a 6 pack of Corona costs $8.

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.

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.

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.

 

[Mr. H.]

It's a good buzz and the hangovers are predictable and managable.
I never put lime wedges in my beer.

From 1/31/12:

Savings rate hits highest level in four months as incomes rise - Los Angeles Times

 

[Widdekind]

reported financial data are not inconsistent with "stereotypes" of "hard-working Latinos" saving earnings to send home, since NAFTA

net Income from US to foreign nationals
net change in personal savings accounts​

 

[Widdekind]

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.)

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