StudentShare solutions
Triangle menu

Savings and Weath in Old Age - Essay Example

Not dowloaded yet

Extract of sample
Savings and Weath in Old Age

The government is responsible in setting up policies that will help individual to accumulate resources that will aid them when they reach the retirement age or old age. For this reason one finds pension policies, taxation policies, housing policies and policies that govern homes where the old can live.
The economy of America depends on the saving behavior of the people. To come up with this kind of behavior, one has to look at the patterns at which people are saving or view savings. Patterns of saving reveal the economic conditions of a country. High savings mean that individuals have high disposable income thus their living standards are better (Graham et. al., 2003).
The saving rates of Americans have lately decreased to 5.3% from 7.6% annually. This is because very many Americans have a problem with household debt which has been on the increase. This is because Americans are spending more money in purchasing things that are essential for their existence. There is the problem of the wealth effect where the more an individual owns the more he or she needs to pay for it. The taxation policy really discourages savings and thus when such a wealthy person gets old; they have nothing to spend because he or she spent it securing the wealth. This reduces the accumulation of wealth for usage during the old age (Graham et. al., 2003).
For the past ten years, there has been a great...
People can quickly acquire liquid cash easily than before. This is increasing the inflation rate thus making things become more expensive and savings reducing completely. When one spends time purchasing goods and services for the use of that particular time, then it means that they have no more cash to keep for later use or for emergencies. Thus wealth is not accumulated and its abundance is a long gone story. This is a negative impact to the people because they have nothing to sustain them when they reach old age (Paul M. et al., 1996).

Since the government sets the particular policies that affect the savings behavior of the people, it has the responsibility of coming up with public policies that will increase national savings. These can only be done by making good public policies. It can first of all make contractionary monetary policies to control the circulation of liquid cash within the economy. This will reduce the amount of liquid cash that is circulating within the economy. The action will reduce inflation by making money become scarce to the people. Thus expenditure in goods and services will reduce prompting people to save more (Paul M. et al., 1996).

Savings can not be done by the government alone. Americans need to balance their purchase of things to enable them to save for their future which is mostly old age. These can be done through campaigns that are being used to educate individuals against high rates of purchasing. They need to learn to purchase the most important things and leave out those that are less important (Paul M. et al., 1996).

The taxation policy by the government is a complete discouragement to saving by ...Show more

Summary

According to biology, old age can be defined as a stage where an individual experiences degeneration of body parts example grey hair, stooping, loss of eyesight, hearing and so on. According to the government one is considered old when they reach the set retirement age which is between 58 and 60 years…
Author : ethanlegros
Savings and Weath in Old Age essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Savings and Weath in Old Age"
with a personal 20% discount.
Grab the best paper

Related Essays

An Age-Old Challenge to Organisational Change
The failure to cope with internal and/or external changes has been the reason for the downfall of large numbers of organisations. Therefore, the major question to be answered is ‘why is change tremendously challenging?’ This paper discusses why people in an organisation resist change.
11 pages (2750 words) Essay
Is Old Age Natural or is it Socially Constructed
Is Old Age Natural or is it Socially Constructed? Introduction As stated by Job (1981: p.13), old age points at people who are sixty five years and over. It is considered the final stage in the life of a person associated with a decrease in both physical and mental features, as well as a decline in the social commitments such participation in sports among others.
10 pages (2500 words) Essay
The Concept of Old Age, Its Stereotypes and the Social Institutions
Stereotype is basically the pre – existing image that people have over a particular group of individuals. It may be positive attribution to a group even though most of the time, it is negative. In the process of stereotyping, people tend to overgeneralize.
12 pages (3000 words) Essay
Old Age and the Welfare State
This is the basis of understanding how a welfare state would be seen as the one that is doing its best to inculcate a feeling of trust, empathy and affection amongst the people who are old and who have invested a good amount of their life and experience within the changing time dimensions.
4 pages (1000 words) Essay
The Poems - Death and old age
This essay gives a detailed information about the "Death and old age". The poet is the addresser of the poem by conjoining the adverse emotions of wait and getting prepared oneself to face the death. The poet is explaining the characteristics of old age when the body of an individual is getting weakened and is no more able to perform the tasks.
4 pages (1000 words) Essay
Preparing for Old Age
The author analyzes a phenomenon wherein people may either fear or enjoy depending on how they prepared for it. He gives recommendations for young people to earn and save for their old age and not spend everything on their present needs. He further suggests that it should become a priority for people nowadays because of the present trend of families.
2 pages (500 words) Essay
Effect of Old Age on SMS Texting Speed
Each participant was tasked to read and reply to a standardized SMS message that was sent to them. The time used by the participant in completing the task was then recorded and collected as data. Statistical analysis using the ANOVA test was conducted to test the omnibus null hypothesis that there would be no differences in the texting speed between all three groups.
5 pages (1250 words) Essay
How Indians and Anglo-Europeans differ in their concepts of time; age; nature; savings and cooperation
As far as the American Indians are concerned, time is vast and is measured in seasons and the rising and the setting of the sun, as opposed to months, days etc. Anglo-Americans perceive of age as something to be feared as it implies that a person’s time on earth is coming to an end but the American-Indians respect and revere age.
4 pages (1000 words) Essay
New age hip hop vs old school
The advances that are brought about by technology are a stimulating factor for the changing music which has left the consumers with a variety of music to choose from and listen to. The audience to the
2 pages (500 words) Essay
Social roles and relationship in old age
The seventh program of the Growing Old in a New Age presents us with the social roles and relationship at old age. This fifty-six minute video highlights how the roles of work, friendship and family undergo development as human beings age.
1 pages (250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation