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goof2 · 10-25-2010, 10:26 AM

I suspect much of the issue for the US in those rankings is due to our real estate market. Somewhere around 30% of mortgages in the country are for more than the house is now worth (in too many cases it is for way more). When the largest single "purchase" most people make becomes a large liability for many it will effect the average net worth for the population. It also doesn't help that all the countries that are "ahead" of us have older median population ages than the US does. For some countries it is as little as a year, others are up around five years. Older people tend to save more and have less debt.

I'd also agree with Paul that there is probably something else going on here. The article mentions the Swiss number increasing by 60% but misses both Australia and Norway jumping 300% in ten years. A compounded annual growth of 12% over 10 years indicates there are other factors affecting the numbers than just saving and paying off debt.

Either way the problem for the French isn't with personal finances, it is their government's finances. Government spending in France is more than half the country's total GDP, and they reach that level with deficit spending. That is not a sustainable model.

10-25-2010, 10:26 AM	#6
goof2 AMA Supersport Join Date: Feb 2009 Posts: 4,756	I suspect much of the issue for the US in those rankings is due to our real estate market. Somewhere around 30% of mortgages in the country are for more than the house is now worth (in too many cases it is for way more). When the largest single "purchase" most people make becomes a large liability for many it will effect the average net worth for the population. It also doesn't help that all the countries that are "ahead" of us have older median population ages than the US does. For some countries it is as little as a year, others are up around five years. Older people tend to save more and have less debt. I'd also agree with Paul that there is probably something else going on here. The article mentions the Swiss number increasing by 60% but misses both Australia and Norway jumping 300% in ten years. A compounded annual growth of 12% over 10 years indicates there are other factors affecting the numbers than just saving and paying off debt. Either way the problem for the French isn't with personal finances, it is their government's finances. Government spending in France is more than half the country's total GDP, and they reach that level with deficit spending. That is not a sustainable model.