Sunday, March 30, 2008

The Squeeze Is On

Here's a graph demonstrating the present-minded obsession of Americans. In 2007, 18% of 401K plan participants took out a "loan" from their plans, effectively stealing from themselves, presumably to pay for something that they don't actually need.

Keep in mind that these are relatively wealthy people with high incomes. If they are in a bind, what about the average schmo on the street?


3 Comments:

Anonymous Anonymous said...

My guess is that more self-indulgence is involved here than necessity, i.e., funds for the lease of a new Mercedes sedan rather than a mortgage payment.

5:48 PM  
Blogger Darrell said...

Agreed, at least in part. Americans are now seemingly defined as consumers, as spenders, and as a result we are debtors.

Rom. 13:8: "Owe no one anything, except to love each other, for the one who loves another has fulfilled the law."

7:44 AM  
Blogger Shamgar said...

I don't disagree that they could be seen as self-indulgence, but you also have to ask WHY are they suddenly making such a radical turn?

I'm not saying this is a conscious part of their decision, but when people continually see their savings decline in value - despite increasing in dollars - they are not stupid. They naturally cut back on saving, and spend. Because "things" have a greater chance of holding value than the currency does. Compare this data with general savings trends and you'll find they match up quite nicely.

6:25 PM  

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