lunedì 19 gennaio 2009

What has the concept of "Savings" got to?

During these recent months I have noticed that, within the wide economic and political debate resulting from the financial crisis and economic recession, a critical element is actually totally absent: the concept of "savings".

Everyday, authoritative economists and politicians highlight the critical role of consumption to create a goods'/services' demand capable to support production. Yet it is essential to remind that if consumption is not supported by adequate levels of income and saving, consumption can be achieved only through debts.

We must remember that the removal of the concept of savings from the development dynamics has driven to the catastrophic financial and economic crisis we are today facing: when families and firms have been convinced to spend more than they could afford (above all in USA), this meant that savings have been cannibalized pushing entire social sectors to unsustainable levels of debt. This condition determined irrational consumption models, without any real and tangible economic support, and parasitic economic forms based essentially on speculation.

We cannot do now the same mistake.

It is necessary to put the idea of savings at the core of the economic and political debate also because savings are one of the most critical factors capable to effectively support and finance productive investments.

However, being savings an income's quota not used for consumption aim, it is necessary to have a reliable bank system and support families' incomes as well: families must be in the condition to have something to save also protecting their purchaising power from speculators and (above all in Italy) against tax evaders.

Consuming, consuming, consuming is not therefore an economically, socially and environmentally sustainable option (it has never be so): it means curing a disease with in the same way which has provoked it...

Only frugality and forms of aware and intelligent consumption will protect us from the shock wave of this economic recession...

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