@BisonJakub …you made a mistake, pure and simple. Accept it. You chose this thread for a reason, and presumably read it in order to decide it was inappropriate for the board. Why waste your time if you’ve gleaned nothing from it?
As you can see, the thread has generated a lot of interest…as have others on a related topic. Which was the board you felt it should be shifted to? As far as I can tell, there are very few that are still as vibrant and worth bothering with as this.
Just as an aside…if you had read more fully on topics related to this, you would have an appreciation for the shortcomings of Medicare Advantage plans for their subscribers who suddenly find themselves in need of sophisticated medical care.
Socializing medicine is just one aspect of creating efficiencies.
The production levels in the US within the heavy industry sectors is not enough. We are moving off the last 40 years of supply side econ into demand side econ. The need is for a tax specific goal of GDP growth.
It would be kind for a Fool to post the net savings and investment ratios of the leading countries with a chart showing the historical development, say for ten or a dozen, just so it is not too congested.
Just about to hit the hay. It is in how you ask AI.
ten years of net savings and investing for G7
Net savings and investment trends in G7 countries over the past decade (2015-2025)
Understanding the net savings and investment landscape of G7 countries over the last decade requires examining various economic indicators and identifying key trends. While comprehensive, definitive data for the entire 2015-2025 period may be subject to ongoing revisions and future analysis, general trends can be observed based on available information.
Savings trends
Shrinking share of global GDP (PPP): The G7’s collective share of global GDP (adjusted for purchasing power parity) is projected to continue its decline in 2025, falling to 28.4% from a significantly higher figure in the past. This suggests a relative shift in global economic power towards emerging markets and potentially influences overall savings rates within the G7.
Varying gross savings rates: Within the G7, significant differences exist in national savings rates. As of 2023 data based on 5 countries, the average gross savings rate was 22.34% of GDP, with Germany exhibiting the highest rate at 30.17%. The United Kingdom recorded the lowest rate among the observed G7 nations at 15.39%. This highlights national differences in savings behavior and economic priorities.
Household savings influenced by various factors: Research indicates that household savings rates are affected by factors such as income developments, real interest rates, and inflation, according to the OECD. Wealth effects through house and stock prices also play a role, particularly in recent years.
US household savings behavior influenced by spending preferences and risky asset returns:A European Commission analysis suggests US households tend to favor current spending over saving for the future compared to European consumers, which contributes to lower saving rates. Furthermore, lower-than-required returns on risky assets also discourage US savings propensity, according to this analysis.
Canada and the US lead in disposable income growth: Canada and the United States saw the most significant increases in average household disposable income per capita between 2007 and 2024, according to Visual Capitalist. This growth, however, doesn’t automatically translate to higher savings, as evidenced by the factors influencing US saving behavior.
Canada’s rising household debt: Canada has the highest household debt in the G7, according to the BBC. This could potentially offset or limit the impact of increased disposable income on net savings for some Canadians.
Investment trends
Lagging productivity and investment: In some G7 countries, like the UK, investment rates have remained lower than typical G7 levels, potentially impacting productivity growth, notes The Productivity Institute.
Increased focus on green investments: Some G7 nations, like the UK, are facing calls for significant green investment programs to address climate change, create jobs, and stimulate economic growth. This highlights a growing recognition of the need for public and private investment in sustainable industries.
Divergent approaches to investment and trade: The G7 is grappling with balancing trade relations, particularly with China, while pursuing economic security and resilience. Differences in policy approaches, such as the EU’s potentially softer trade measures compared to the US, could create tensions and impact investment strategies.
Technology and adaptability as drivers: The “Magnificent Seven” (Mag 7) group of stocks has been at the forefront of technological advancements and consistently invest in research and development, adapting to changing market conditions and driving consumer demand. Their strong market positions and global reach attract investment.
Volatility in specific sectors and the overall market: The Mag 7, despite their success, experienced volatility and even entered bear market territory in late 2024 and early 2025, notes Ameriprise Financial. This underscores the potential for market fluctuations even within high-growth sectors.
In summary, the G7’s collective economic influence is diminishing as emerging economies rise. Within the G7, individual countries exhibit diverse savings and investment patterns shaped by domestic policies, economic conditions, and global shifts. While some nations demonstrate robust savings and a focus on green investment, others struggle with issues like high household debt and lagging productivity, highlighting the need for careful consideration of both national and international factors impacting savings and investment strategies.