SaveToday For a GreaterTomorrow

By saving more today, we can reduce the future burden of demographic change, Saving more requires that we consume less or work more either way sacrifice---taken from FED chairman Ben S. Bernanke for which the link is given below in continuation to that I would like to add few things to Indian context so one has to read that to understand this. Japan had a boom time economy in 1980-1990 U.S in 1990-2000 & now India is having boom End year will be know only when crash landing or soft landing of the economy happens in 5-8 yrs, why should one discuss this topic now- we have a younger generation which is pushing the Indian boom they are earning at a faster pace than there previous generation there are more independent in there life style & spending more than what they can earn ( credit off take of the economy by the retail sector credit cards sale and money spend using them are few pointers ) or committing there future salary now itself as they spend on housing, cars & many more things on easily availed credit not a bad idea.
The so called self sustaining boom in India is due to spending power which this new generation has got; due to high pay with regular hike in pay scales, and attitude of the generation to spend more on themselves and luxury way of living is creating demand for product and service, we have almost moved from a saving economy to a spending economy and there is sizable fall in saving rate compared with growth of the economy which is very good when growth is there or till the growth is sustainable all will be good. (attrition rate in many industries will prove high pay & regular hikes and we are getting to a point where labour is getting scare and if we don’t develop a proper system there would be shortage of skilled labour soon, even basic labor in many states metro are becoming very difficult & expensive to get )
Will history repeat? Any booming economy will have to face a slowdown at some point of time which can push job cut, cut in salary, credit squeeze, cut in spending rates this is almost a cascading effect. The message- taking credit is not bad few assets can be accumulated only if credit is taken but taking credit to close one more credit & keeping a tight repayment without any saving will danger u when u have a case of emergency. In U.S there is fall or negative off take of credit cards which means many have sundered there credit cards so younger generation in India has to take clue from others economy while repaying u r credit have u are saving also running parallel this requires a sacrifice & if that is not done today it will never be done. SAVE TODAY for a ever green future.
http://www.federalreserve.gov/boarddocs/speeches/2006/20061004/default.htm Remarks by Chairman Ben S. Bernanke-The Coming Demographic Transition: Will We Treat Future Generations Fairly?