Wednesday, March 10, 2010

living above our means...,

MarketSkeptics | If the economy was a person, then the producing sector (agriculture, manufacturing, mining, etc) would be its “income”. If the service sector is much smaller than the producing sector (like China today or the US one hundred years ago), then a country is living below its means (net saver). If the service sector is much larger than the producing sector (like China today or the US one hundred years ago), then a country is living above its means (depleting savings and going into debt).