ll a pathetic savings rate. (Online) Even better you combine inflation with a tax on your interest income. You know a tax which, doesn’t recognize that most of that interest income is necessary to just to stay even, and to make up for the inflation rate. That’s what the government does for the people. I used to live in New York City, and I can personally testify the total tax rate if you add up the federal rate of almost 40%, and the income tax rate of the city, and the state tax it’s over 50%. In New York City the income tax rate over 50%! Suppose that your making an interest return of 5% on your savings. The government takes more than half of that. Lets say they take only half that reduces your interest return to 2.5% the according to Angel consumer prices for the last half year have been running around 3% (Online) so you got a 2.5% percent rate of return after you pay taxes. The prices you’re paying are increasing at a 3% rate. What is your real interest return? Minus .5% it’s a negative real return. Now I think this is worth doing everybody should do this. When you take account of the inflation rate, and taxes you pay the odds are pretty good that you will find yourself very close if not in the negative range. You may be asking yourself why should I save. The point of this is not that you shouldn’t save; there are reasons to save even if the value of your saving is slowly shrinking over time. You can still increase you wealth by savings, but talk about discouraging you get nothing out of the interest. The third way of reducing the rate of economic growth is “divert savings from financing production to financing consumption”. (Buechner Recording) Anything that can be done which, can divert savings away from financing, investment, production, additions to productive capacity-anything at all along those lines of taking savings, and instead giving them to people to finance consumption purc...