Monday, 18th May -- Monday Funday, page-107

Why do people have to work and save?

I'd say the reason is that the inflated asset prices are increasing the division between rich and poor. Those with exposure to assets like shares or property are benefitting more than those who do not. Much more, those who do not are not benefitting other than perhaps the "privilege" of being able to work and earn an income.

So those who are not saving and giving themselves exposure to assets are being left behind and risk becoming part of an entrenched underclass, if this style of economic management went on forever. Whether you are saving for yourself, or your kids, I think that risk is a good enough reason.

Really, there should be more effort at redistribution, probably via taxes, at this stage. All of the great empires in history tended to end following the concentration of wealth and power into too few. I think the problems that causes is similar to what caused the USSR to fail. A few people can't manage the wealth and power as effectively as many can, eventually this problem becomes critical. Devolving the organisational and decision making of a nation among many, as capitalism did in its post war hey day, is always going to be the most efficient in the long run.