Phan observed this issue firsthand while he was in Singapore studying the effects of the Asian economic crisis. Taiwan, which showed annual growth of 4 percent in the midst of Asian economic collapse, succeeded he says due to its robust entrepreneurial economy which was funded mainly by friends and family. Phan says the US can learn a lesson from Taiwan in that regard. There's much more patience for long-term planning and growth than there is with public funding. It makes sense for the government to encourage higher household savings, but this 100-plus months of expansion has been consumption based.
Personal debt is the highest it's ever been.
That means there are no acorns squirreled away for next generation.