The road ahead for full financial system reform is indeed still long and complex. It is a historic struggle seemingly most genteel but no less tougher than military battles fought with real blood and tears. It is a struggle against entrenched interests that seek to preserve the mediocre status quo that has led our country’s financial system to nowhere.
Thus, the answer to whether government or private saving does more to foster productivity growth arguably comes down to the propensity of U.S. savers to take risks. Government saving is reflected largely in a retirement of debt.