econscius

Republicans Are Better Savers Than Democrats

In Voter Intelligence on December 14, 2012 at 1:50 am

monopoly man

President Obama’s $6 trillion of federal deficits is not out of character. A study by Harris Interactive and Wells Fargo found Republicans are better savers than Democrats. Regardless of income level, GOPers start saving earlier and greater proportions of Republicans save at the Baby Boomer level. [1]

It certainly is true many Democrats do save but why are Dems overall less likely to? The linked Marketwatch article makes suggestions based on data in other surveys, such as greater wealth, the fact Republicans are more likely to have earned a college degree, risk aversion and even Republicans’ proclivity toward greater neatness and organizational skills.

It may be one reason why D’s and R’s believe differently. Perhaps some Dems are overwhelmed by setting up a savings account or mutual fund and would prefer to have Washington, DC do it for them?

If you don’t save for retirement, you may desire a government bailout. If you don’t bother with a savings account, you are a pink slip away from a financial disaster. That may manifest itself in a belief unemployment benefits should be supple and last for many years. Didn’t get around to a Coverdell or 529 plan for your kid’s college savings? When she’s 17, you might be a likely Democratic voter, wanting someone else to pick up the tab.

There is a take-away for those of us who prefer a smaller government, which is supporting cultural shifts toward saving. We can lead by example, not going deep into credit card debt for frivolous wide-screen TVs. Where we can, commend friends and relatives who set up a retirement IRA or a college savings fund for their children. Excessive debt was once frowned upon by society, and it really is neither a “R” or “D” issue that too many live on the financial precipice. People short of savings, regardless of their income level, are voters who may look to Uncle Sam to bail them out. The same applies to over-leveraged companies in this age of government bailouts.

[1] http://blogs.marketwatch.com/encore/2012/12/12/do-gop-voters-save-better-than-democrats/

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