I have heard some economic debaters claim that the living standard of the majority of the population in many western countries (also before the present crisis) are lower than it used to be in earlier times. Is this true?
bearing01: Savings are not just in dollars. Investments like stocks and bonds or gold/silver are also savings. Those things don't really buy themselves (except for compounding or dividens). You have to forego consumption in order to buy them. That's saving.
Savings are not just in dollars. Investments like stocks and bonds or gold/silver are also savings. Those things don't really buy themselves (except for compounding or dividens). You have to forego consumption in order to buy them. That's saving.
Even if the savings rate reflected all of these investments, which it doesn't, it would still be a flow measure, not a stock. In other words, it does not tell you net worth.