I think it might be an inherent thing. People, given the right incentives and enough security and money, will always want more. If they have the chance to get it (through either rising incomes or through debt) they will do so. The incentives we have in place encourage it.
Easy credit and easy bankruptcy laws mean that more people are likely to take on more credit.
At the same time we have numbers of services provided like good health care (and good insurance) and old age pensions and security which mean that we don’t need to save as much for a rainy day. Our plans will do it for us. These aren’t bad things but they make people feel more secure. The more secure we are the more likely we will be able to feel secure with spending a little more.
To contrast: a country like china has very few social support programs , (relatively) strict bankruptcy courts, and tighter credit. They are large savers.
In comparison: Mainland Europe has good support systems but very punishing bankruptcy courts and tighter credit and they tend to fall between china and the US for consuming.
We naturally gravitate to wanting more. And if we can feel more secure in those purchases we will make them.
I think it might be an inherent thing. People, given the right incentives and enough security and money, will always want more. If they have the chance to get it (through either rising incomes or through debt) they will do so. The incentives we have in place encourage it.
Easy credit and easy bankruptcy laws mean that more people are likely to take on more credit.
At the same time we have numbers of services provided like good health care (and good insurance) and old age pensions and security which mean that we don’t need to save as much for a rainy day. Our plans will do it for us. These aren’t bad things but they make people feel more secure. The more secure we are the more likely we will be able to feel secure with spending a little more.
To contrast: a country like china has very few social support programs , (relatively) strict bankruptcy courts, and tighter credit. They are large savers.
In comparison: Mainland Europe has good support systems but very punishing bankruptcy courts and tighter credit and they tend to fall between china and the US for consuming.
We naturally gravitate to wanting more. And if we can feel more secure in those purchases we will make them.
References :
Higher per capita disposable incomes.
References :