Book Review, Beyond our Means, published 10/15/11 by Library Journal

Garon, Sheldon. Beyond Our Means: Why America Spends While the World Saves. Princeton Univ. Nov. 2011. c.480p. bibliog. index. ISBN 9780691135991. $29.95. ECON

While Garon’s (history, Princeton; Molding Japanese Minds: The State in Everyday Life) study is comprehensive (with hundreds of notes and a large bibliography), his subtitle is slightly misleading. He explains savings programs in Western Europe and Southeast Asia but not why America spends. Although the U.S. government has not promoted savings as much as other nations have, the 1910 U.S. savings rates surpassed those of all other countries except Germany—a trend that changed after World War II. Garon examines the past two centuries of world history to determine “how rival cultures of savings and debt came to be.” Savings campaigns, some intrusive or compulsory, utilized advocacy groups, propaganda, patriotism, innovative institutions, and government incentives. Rationales were not always that “growing economies required savings for capital formation” but also that savings campaigns discouraged revolts and minimized welfare costs. However, some countries with government safety nets still have high savings rates. Garon provides five suggestions for increased rate of savings: easier bank access, government encouragement, tax incentives, youth programs, and more financial inclusion. VERDICT This book will prove most informative for social policy gurus, bankers, politicians, and economically minded citizens.—Joanne B. Conrad, Geneseo, NY