Beyond Our Means, by Sheldon Garon

People in nations with substantial social welfare provisions save more than Americans, who lack some of those provisions and therefore should be saving more to cover unpredictable expenses. European households keep saving through retirement, but Americans dissipate their wealth in retirement. Rapid economic growth does not lead to higher savings by individuals in the United States, whereas in Europe even slow growth results in significant savings rates. Why?

Sheldon Garon contends that Americans lack moral teaching related to wealth, public policies that encourage saving, and a cultural ethos that nurtures practices of thrift. To realize success, Americans instead rely on high consumption, borrowing and visions of the steady high growth of wealth.

Garon explains that in the 19th century numerous advocates of frugality preached that saving was a virtue that would result in social solidarity, instead of the uprisings that could be inspired by poverty-stricken citizens who had not saved. Patriotism and saving became linked, and the connection was bolstered by the claim that even small savings could help the working class secure a better bargaining position in labor relations. In their role as frugal household managers and teachers of children, women helped perpetuate a savings mentality. But these factors were more evident in Europe, where a communal vision, rather than individualism, has been a key virtue.