The government hates savings. There is no need for it anymore, as loans and the products on which the banks make money appear to be entirely divorced from the deposits on-hand at this point. The Fed just prints more money if the banks overextend. Thus, there is no need for banks to give a meaningful interest rate on savings, and the only reason to put your money on deposit at the bank is that things are intentionally made more difficult and expensive if you don't.
We need to recognize that we live under a regime in which bankers have the entire populous by the throat. To live a decent life by American standards, nearly everyone has to take out loans for every major purchase and ends up paying 2-3x the nominal cost in interest. Let the massive scale of this sink in for a moment and you'll get some concept of just how powerful, all-consuming, and critical the banks are in this country.
Savings is anathema to this loan-based society that's been concocted. If someone has substantial savings, they may not need a loan, and that's very bad for the powers that be (because they won't get 2-3x the cost of the item over some years). Keynesian economics has been taken to its logical conclusion of sub-zero interest rates and practically everyone is indentured to their lienholders and employers. "The Road to Serfdom" indeed.
I agree that the government hates savings, but I'm confused about two of your points. If rates are at or near zero it does not cost 2-3x to buy an item with loan. The indentured part is certainly true though. The government has helped tie everyone to their company. Health insurance and max retirement savings are two of the biggest items that are almost impossible to do outside of your employer.
We need to recognize that we live under a regime in which bankers have the entire populous by the throat. To live a decent life by American standards, nearly everyone has to take out loans for every major purchase and ends up paying 2-3x the nominal cost in interest. Let the massive scale of this sink in for a moment and you'll get some concept of just how powerful, all-consuming, and critical the banks are in this country.
Savings is anathema to this loan-based society that's been concocted. If someone has substantial savings, they may not need a loan, and that's very bad for the powers that be (because they won't get 2-3x the cost of the item over some years). Keynesian economics has been taken to its logical conclusion of sub-zero interest rates and practically everyone is indentured to their lienholders and employers. "The Road to Serfdom" indeed.