Americans begin to save as Chinese start to spend
FLORIDA: The United States and China have been playing a little economic role reversal as both countries adjust to the new realities created by the global recession.
Americans – who have thrived for years on their insatiable consumerism – are now stashing away more of their income and are getting better at paying down debt. Meanwhile, China is encouraging its frugal citizens to open their wallets and help stimulate domestic consumption.
“The fact that our savings rate is going through this change is good news,” said Ali Parhizgari, global finance scholar and professor at Florida International University’s College of Business Administration. “But unfortunately, it is slowing down the process of recovery.”
Read: “Economic stimulus plans create role reversal“, an article from The China Daily US Edition.