Summary

The American savings rate, always low by international standards, has fallen sharply in recent decades. In this essay, I argue that a large part of the savings shortfall results from pressures to keep pace with community spending standards, pressures that have been exacerbated by rising income and wealth inequality. The progressive consumption tax is one possible remedy.

Recommended Citation

Frank, Robert H. (2005) "Progressive Consumption Taxation as a Remedy for the U.S. Savings Shortfall," The Economists' Voice: Vol. 2 : Iss. 3, Article 2.
DOI: 10.2202/1553-3832.1089
Available at: http://www.bepress.com/ev/vol2/iss3/art2