Beyond Our Means: Why America Spends While the World Saves

by Sheldon Garon

Why Americans aren't thrifty and the rest of the world is

If the financial crisis has taught us anything, it is that Americans save too little, spend too much, and borrow excessively. What can we learn from East Asian and European countries that have fostered enduring cultures of thrift over the past two centuries? Beyond Our Means tells for the first time how other nations aggressively encouraged their citizens to save by means of special savings institutions and savings campaigns. The U.S. government, meanwhile, promoted mass consumption and reliance on credit, culminating in the global financial meltdown.

Many economists believe people save according to universally rational calculations, saving the most in their middle years as they plan for retirement, and saving the least in welfare states. In reality, Europeans save at high rates despite generous welfare programs and aging populations. Americans save little, despite weaker social safety nets and a younger population. Tracing the development of such behaviors across three continents from the nineteenth century to today, this book highlights the role of institutions and moral suasion in shaping habits of saving and spending. It shows how the encouragement of thrift was not a relic of indigenous traditions but a modern movement to confront rising consumption. Around the world, messages to save and spend wisely confronted citizens everywhere―in schools, magazines, and novels. At the same time, in America, businesses and government normalized practices of living beyond one's means.

Transnational history at its most compelling, Beyond Our Means reveals why some nations save so much and others so little.

Genres: History, Business, Politics, Nonfiction

488 pages, Paperback

First published January 1, 2011

Reviews

[Eveline Chao]

Fascinating history of the past 200 years of saving and spending in the US, Britain, Europe, Japan, and some of Asia at large. Overall message is that Americans don't save their money, other countries do, and there are institutional and policy reasons why, not just our supposed ingrained American profligacy. One of the most surprising revelations for me was that even in countries with lavish welfare provisions like France, which economists tell us ought to have low savings rates because welfare support disincentivizes them from doing so, savings rates are actually high. Was also really interested to learn about the institution of postal savings banks in Britain, Japan, and much of Asia and continental Europe, which enable lower income people to access banking services without high fees. Interviewed the author for an article and will try to remember and post a link to it here when it comes out.

[Kurt Anderson · Rating 4 out of 5]

Very informative (sometimes downright fascinating), though dry at times.

Don't be misled by the title - this is a historical overview of various forms of institutional and ad hoc saving in England, Denmark, France, Germany, and Japan as well as those of the United States. It covers all of these nations' history of saving up to World War II. It is only in the last third of the book that the author largely (though not entirely) focuses on developments in the United States.

It was interesting to observe the chicken-and-egg interplay between Policy, Shared History, and Culture in shaping a culture's saving profile (and, for that matter, most other aspects of culture).


Important note: this is, first and foremost, a history text. The only time at which the author proposes possible recommendations/remedies is in the last chapter. (This may turn some on to the book, and some off. Just know what you're getting into.)

[Ariadna73 · Rating 3 out of 5]

Here is my comment in my Spanish Blog: http://lunairereadings.blogspot.com/2...
This author travels all over the world hunting for the history of different countries that save money; and finding out why americans just don't do it. The answer is in history: americans have always been living in a strong culture of entitlement; taking everything for granted and never saving for worse times; because in their minds there won't be worse times. Acording to this book; that is the greatest mistake of american people; and they are already paying a high price for it. The hope; however; lies on the american resilience; and building spirit. There is hope that future generations of americans will be more conservative with money; and will be less crazy in times of abundance. We shal see...

[Carlos · Rating 3 out of 5]

I first head about this book on a podcast using the NPR iPhone app. During the interview I was lead to beleive that the book was mainly about US savings rates and policies, so I gave it a read. Most of it was historically based, using China, but especially Japan as compartive models.
Not exactly what I was looking for. Didn't really go into to much detail as to currently United States policy and legislation affecting savings rates. Not a bad book however I just focused on Chapters 11 and 12 for US based information.

[Jim · Rating 4 out of 5]

Fascinating for its insights into state sponsorship of thrift through advertising, children's savings campaigns and subsidized savings for the "little guy" in Britain, Japan, France, Germany and the United States--- not so much. Clearly a book a banker or economist would love. Good for general policy wonks and frankly this should be part of our national discussion about deficits. Better to have them financed by US savers than foreign governments.

[Rissie · Rating 3 out of 5]

I must say, the cutesy Norman Rockwell painting on the cover certainly belies its serious content. This book exhaustively tells the hows and whys (but mostly the hows) of people saving in America, Europe and Asia for the past several centuries. The subject is potentially interesting, but the delivery was so dense and dry that it was hard not to drift.

[Francine Apollo · Rating 3 out of 5]

A good book and somewhat entertaining. The author's bibliography added nearly 100 pages to this tome. It would make a great resource for anyone researching for a college paper.

[Derek · Rating 5 out of 5]

A very interesting history of savings (with a dash of consumerism) throughout (much) of the world. I highly recommend this to anyone interested in economic history.