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President Obama's Treasury Secretary Timothy Geithner told a German reporter that Americans will need to save more to pave the way for a more prosperous future."Everyone is going to have to come to terms with the fact that we are going to save more in the United States. . . If the U.S. starts saving more, that changes the whole world's economic reality."
I agree. The United States should start saving more. Unfortunately, the policies that the Obama administration have implemented have encouraged people to do the exact opposite -- opting for a Keynesian approach that encourages increased consumption even if there's no money to pay for it.
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