Comments on: An Interesting Question: What if EVERYONE Was Financially Savvy? http://allfinancialmatters.com/2008/08/25/an-interesting-question-what-if-everyone-was-financially-savvy/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 By: Jimmy http://allfinancialmatters.com/2008/08/25/an-interesting-question-what-if-everyone-was-financially-savvy/comment-page-1/#comment-352345 Jimmy Wed, 27 Aug 2008 12:41:15 +0000 http://allfinancialmatters.com/?p=2784#comment-352345 Our economy has become dependent on a market driven by people increasing their spending with time, rather than population increase. In both cases, there are natural limits and it is irresponsible for anyone to advocate spending on items not needed. Our economy has become dependent on a market driven by people increasing their spending with time, rather than population increase. In both cases, there are natural limits and it is irresponsible for anyone to advocate spending on items not needed.

]]> By: terry http://allfinancialmatters.com/2008/08/25/an-interesting-question-what-if-everyone-was-financially-savvy/comment-page-1/#comment-351611 terry Tue, 26 Aug 2008 00:21:33 +0000 http://allfinancialmatters.com/?p=2784#comment-351611 As a financially savvy poor person, I can say that the poor won't save 10 percent of their income even if they became financially literate. As a financially savvy poor person, I can say that the poor won’t save 10 percent of their income even if they became financially literate.

]]> By: pj http://allfinancialmatters.com/2008/08/25/an-interesting-question-what-if-everyone-was-financially-savvy/comment-page-1/#comment-351606 pj Tue, 26 Aug 2008 00:10:39 +0000 http://allfinancialmatters.com/?p=2784#comment-351606 People who consume benefit the economy in the short term, people who save benefit the economy in the long term. The latter is more favorable, regardless of what politicians say nowadays. 'Misers' are very good for society. They provide capital, they put that capital at risk, allowing businesses to take risk and expand. In a world full of frugal people looking to retire early, the business world would be more focused on capital intensive cost lowering investments to make things cheaper (even more rapidly than business does so now - I am talking in real terms here) and less labor intensive. The world wouldn't stop, far from it actually. People who consume benefit the economy in the short term, people who save benefit the economy in the long term. The latter is more favorable, regardless of what politicians say nowadays.

‘Misers’ are very good for society. They provide capital, they put that capital at risk, allowing businesses to take risk and expand.

In a world full of frugal people looking to retire early, the business world would be more focused on capital intensive cost lowering investments to make things cheaper (even more rapidly than business does so now – I am talking in real terms here) and less labor intensive.

The world wouldn’t stop, far from it actually.

]]> By: Gerard http://allfinancialmatters.com/2008/08/25/an-interesting-question-what-if-everyone-was-financially-savvy/comment-page-1/#comment-351585 Gerard Mon, 25 Aug 2008 23:14:31 +0000 http://allfinancialmatters.com/?p=2784#comment-351585 That's a very interesting question. As you say, the money needs to come from somewhere and in effect, what you end up doing is simply shifting wealth. By helping someone, your hurting someone else... it's a zero sum game. There was an interesting link on the subject that was shared a while ago (not sure where I got it from - http://jim.com/econ/contents.html) which goes through the basic idea of 'choice' in an economy. Makes for interesting reading (the few chapters I've read through, at least) That’s a very interesting question. As you say, the money needs to come from somewhere and in effect, what you end up doing is simply shifting wealth. By helping someone, your hurting someone else… it’s a zero sum game.
There was an interesting link on the subject that was shared a while ago (not sure where I got it from – http://jim.com/econ/contents.html) which goes through the basic idea of ‘choice’ in an economy. Makes for interesting reading (the few chapters I’ve read through, at least)

]]> By: Used Cars http://allfinancialmatters.com/2008/08/25/an-interesting-question-what-if-everyone-was-financially-savvy/comment-page-1/#comment-351499 Used Cars Mon, 25 Aug 2008 19:41:24 +0000 http://allfinancialmatters.com/?p=2784#comment-351499 You brought up a lot of great budgeting and money saving tips that I am currently trying to enact in my family. It all starts with paying your bills on time and living within your means. You brought up a lot of great budgeting and money saving tips that I am currently trying to enact in my family. It all starts with paying your bills on time and living within your means.

]]> By: early retirement extreme http://allfinancialmatters.com/2008/08/25/an-interesting-question-what-if-everyone-was-financially-savvy/comment-page-1/#comment-351480 early retirement extreme Mon, 25 Aug 2008 18:47:47 +0000 http://allfinancialmatters.com/?p=2784#comment-351480 In short .. the economy would be more like Europe's In short .. the economy would be more like Europe’s

]]> By: Steve Braun http://allfinancialmatters.com/2008/08/25/an-interesting-question-what-if-everyone-was-financially-savvy/comment-page-1/#comment-351477 Steve Braun Mon, 25 Aug 2008 18:34:52 +0000 http://allfinancialmatters.com/?p=2784#comment-351477 Very, very interesting theoretical topic. Thankfully we'll never have to deal with the reality of these scenarios as long as the global economy is run by human beings. Very, very interesting theoretical topic. Thankfully we’ll never have to deal with the reality of these scenarios as long as the global economy is run by human beings.

]]> By: Andy http://allfinancialmatters.com/2008/08/25/an-interesting-question-what-if-everyone-was-financially-savvy/comment-page-1/#comment-351466 Andy Mon, 25 Aug 2008 18:09:38 +0000 http://allfinancialmatters.com/?p=2784#comment-351466 Savings are spent eventually. If you save more when you are young, you'll just spend more when you retire (hopefully). Otherwise what's the point? So not everyone can save 10% because some people live off of savings. Savings are spent eventually. If you save more when you are young, you’ll just spend more when you retire (hopefully). Otherwise what’s the point?

So not everyone can save 10% because some people live off of savings.

]]> By: "Mo" Money http://allfinancialmatters.com/2008/08/25/an-interesting-question-what-if-everyone-was-financially-savvy/comment-page-1/#comment-351453 "Mo" Money Mon, 25 Aug 2008 17:07:31 +0000 http://allfinancialmatters.com/?p=2784#comment-351453 I don't think we will have to worry about this happening anytime soon. Most folks want to keep on doing what they have been doing in the past. I don’t think we will have to worry about this happening anytime soon. Most folks want to keep on doing what they have been doing in the past.

]]> By: Dave http://allfinancialmatters.com/2008/08/25/an-interesting-question-what-if-everyone-was-financially-savvy/comment-page-1/#comment-351448 Dave Mon, 25 Aug 2008 16:51:51 +0000 http://allfinancialmatters.com/?p=2784#comment-351448 The money is spent. If not by us then by businesses. With all these dollars chasing the investments we'd see low rates and high inflation. The market will place a price (not a return) on delaying consumption. The money is spent. If not by us then by businesses. With all these dollars chasing the investments we’d see low rates and high inflation. The market will place a price (not a return) on delaying consumption.

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