South Africans could be saving too much, Absa says

[C4Cat]

Fact is that most of us only make money if other people are spending money. There is a balance that needs to be reached between saving and spending, since spending money is also supporting people, which is obviously essential for a functioning economy. The economy can't grow unless people are spending money. Saving is important but so is supporting the people and businesses around you.

 

[Craig_]

It is not that people are saving too much.... it is more a case of people now being careful and working much better with the money they have. No one is guaranteed they will still have a job tomorrow or by the end of the month. No one is sure when their company will call them in and inform them of a pay cut. People are unsure, people are scared.

Bad economic growth are being laid squarely at the feet of the ANC.

This ^^, I haven't been negatively affected by Covid but I've also stopped buying unnecessary crap, if I don't need something I go without it. And I think many people have done that. I know of so many people that have lost jobs that even though my job is quite stable, I don't trust that stability considering that the economy is in the shitter.

 

[The_MAC]

ABSA should dish out more credit, blacklisted people, poor credit score etc. - then people will spend more..

Wait, that's not economical is it

 

[The_MAC]

Fact is that most of us only make money if other people are spending money. There is a balance that needs to be reached between saving and spending, since spending money is also supporting people, which is obviously essential for a functioning economy. The economy can't grow unless people are spending money. Saving is important but so is supporting the people and businesses around you.

If the economy shrinks, that pool of money shrinks - you cannot make it up with credit

But I hear you, yes, spending disposable income stimulates the economy

 

[Aghori]

South Africans are also eating too much Jason

This.

BTW SinghDude is almost unrecognisable now... he has 3 chins and 2 stomach folds. That oke huffs and puffs like the big bad wolf if he walks up a flight of stairs... I was shocked to say the least. He was a friend so I didn't say my usual "Go be fat somewhere else you landwhale".

 

[ToxicBunny]

Fact is that most of us only make money if other people are spending money. There is a balance that needs to be reached between saving and spending, since spending money is also supporting people, which is obviously essential for a functioning economy. The economy can't grow unless people are spending money. Saving is important but so is supporting the people and businesses around you.

Absolutely no question that one needs to spend money and there needs to be a balance between saving and spending.

But one must be sure that if ABSA are pontificating on people saving too much, its because they're concerned that they're losing revenue on the credit that people aren't taking to support their lifestyle.

 

[maxxis]

Proudly sponsored by "Absa personal loans"

 

[Jet-Fighter7700]

sure ABSA they will use their influence with the reserve bank to increase interest rates soon enough.

 

[LCBXX]

To spend, you need disposable income. The state of the economy isn't encouraging to spending. In fact, people are constantly being threatened with erosion of their freedoms and job security.

So they save. Thank God they do, or at least, try to.

 

[rietrot]

They've diagnosed the problem ass backwards.

People saving too much isn't the problem. People are saving because of problems.

Specifically upperclass who do have disposable income, but can't spend it at the moment because new business is risky, most fun stuff have been locked down.

 

[The_MAC]

They've diagnosed the problem ass backwards.

People saving too much isn't the problem. People are saving because of problems.

Specifically upperclass who do have disposable income, but can't spend it at the moment because new business is risky, most fun stuff have been locked down.

For some, the ass is the face..

 

[Max_Bloo]

Jason Quinn does look like the type of person who'd say things like that.
That face..

 

[JohnStarr]

Spend, but don't spend too much otherwise debt trap.
Save, but not too much as not enough spending and economy stagnates.

Which choice to make. If only government could just go create jobs instead of stealing money and sending the wrong message to the international community. If only.

 

[MagNorthDigital]

Oh absa, just sour they're not making that extra scratch on transaction charges...

But seriously, they win either way, so this is just PR for the reserve bank to decide on the future interest rates.

 

[The_Librarian]

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