Economists often claim people save according to universally rational calculations — saving the most in their middle years as they plan for retirement and saving the least in welfare states. In reality, Europeans save at high rates despite generous welfare programs and aging populations. Americans save little, despite weaker social safety nets and a younger population.

Tracing the development of such behaviors across three continents from the nineteenth century until today, Sheldon Garon argues there is much to be learned by comparing savings and spending habits across the world. His new book, Beyond Our Means: Why America Spends While the World Saves, explores how some countries have fostered enduring cultures of thrift, supported by savings institutions and national campaigns. In the U.S., we have taken another path emphasizing mass consumption and a reliance on credit. Politicians and industry leaders alike have framed consumer spending as a civic duty, undoubtedly lowering national savings rates but also undermining household economic security.

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