Savings Levels in West Rise
Keynesian economists believe that a country can spend its way out of a recession. However, during the last few years of economic uncertainty, savings rates in developed economies are increasing. This decrease in consumption could prolong the recession.
Inhibitors: 1. Developed welfare programs lessening the cost of unemployment 2. Government work programs 3. High levels of innovation developing attractive new products
Enablers: 1. Push by some to use Hayekian economic principles 2. Reduced demand by Asian countries to purchase US government debt