Section: English

16) The Treasury Department is taking a new look at regulations limiting the number of interest that bank and savings, and loan associations can pay on deposits. And a likely beneficiary of changes under study was the small depositor who is now cut off from the higher interest rates that attract wealthier investors.

The stultifying weight of government regulation keeping interest rates down for the small saver is surely the main reason the rate of saving is so lowly in this country, less than 5 percent of personal income. The saving rate is by far the lower of any modern industrialized country and is a major factor to causing our high rate of inflation.