"Predictably Irrational" by Dan Ariely & Energy problem

HarperCollins Publishers $25.95 for "Predictably Irrational" endorsed by Nobel laureates in Economics.

Dan Ariely is Professor of Behavioral Economics at MIT.(Not Made In Taiwan!)

Page 109: "The problem of Procrastination and Self-Control: Onto the American scene, populated by big homes, big cars, and big screen plasma TV, comes another big phenomenon: the biggest decline in the personal saving rate since the Great Depression. Go back 25 years, and double digit savings rates were the norm. In 1994, the saving rate was 5% but by 2006 saving rate fell below zero to negative 1%. Americans were not only not savings; they were spending more than they earned. Europeans save an average of 20%. Japan's rate is 25%. China is 50%. So what's up with America? Happenings for profound thoughts!

Americans have succumbed to rampant consumerism.

Page 110: The average American familiy has 6 credit cards. In 2005, 6 billion direct-mail solicitations for credit cards. Frighteningly, the average family debt is about $9,000 and 7 in 10 households borrow on credit cards to cover basic living expenses as food, utilities, and clothing."

My comment: Can Americans learn to save? American lifestyle is to enjoy now and pay later. I remember in the textbook by Prof. Samuelson of MIT: Happiness is material consumption over desire. In my previous blog,I would add intellectual pursuits and spiritual satisfaction with good health in the numerator over the Desire as Denominator in the Equation for Happiness. Such thoughts may be found in Confucianism but Asian philosophy is not taught in USA. However,it is being taught in China nowadays. Impacts are seen in the media if noticed.

Addenda: Pete Morton,Economist at Wilderness Society wrote: " The oil and gas industry has 44 million acres of public land under lease, mostly in Colorado,Montana, New Mexico, Utah and Wyoming, but only 14 million acres are in production. Domestic drilling opportunities are not scare, and additonal leasing has little marginal value for lowering energy prices for consumers.
The US has only 3% of the world's oil, but we consume 24% of the global supply. If we rapidly consume our dwindling supply, we leave future generations in dire straits. Rather than drilling more, we should be investing in energy conservation and efficiency, more fiscal discipline, and more government oversight of energy markets. Demand-side management, strengthening the dollar, and reducing market speculation and manipulation will lower energy prices more efficiently than leasing our widelife refuges and national parks at the expense of future generations. Published by the Washington Post,June 14, 2008 page A14. Such views may be found in Confucianism et passim.

The gist of Sino-American Economics may be found from the above if detected. Thanks for reading and have a great day,everyday! 6/14/2008 at 10.48 a.m.