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Originally Posted by ChicagoHCHII
If you know or expect that you're only going to get SS payments if you have no money upon retirement, you are going to align your behavior to spend more now so that you will have no money at retirement to take advantage of the expected subsidy, having a negative impact on personal savings.
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Since Americans savings are already negative (meaning they don't save), there would be no adjustment in behavior. The behavior already exists.
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On the Japanse I see your point I overlooked that there is less downside risk for them in building the smaller cars.
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Right. The Japanese companies are merely meeting market demand when they build small cars for their people.