I'm disturbed by what appears to an 'American truth' in this article. It seems that most people take the path of less complexity, beneficial of not, even when it comes to their own financial well-being. That is, by default they'll accept whatever is placed before them when it comes to savings and some of the 'free' money that comes with employer-matched 401(k) plans.
Americans live in the moment, financially, no matter the longer term consequences. There are so many things that compete for our time that we choose the path of least resistance, from the perspective of time and complexity, even when when such a course is not in our best rational interest.
Recently, our Vermont Socialist Congressman blamed the banks for the average Vermonter's $17,000 credit card debt. It's the banks' fault, according to Bernie Sanders, that people charge excessively to their credit cards. This ridiculous opinion spawned letters to the editor of the Burlington Free Press bemoaning the lack of personal responsibility. Sanders always panders to victimization. This opinion below is of the same thinking.
"You know you'd be happier tomorrow not to put the extra purchase on the credit card, but you don't have a way to prevent yourself from charging it," said James M. Poterba, professor of economics at the Massachusetts Institute of Technology. "These findings suggest that there's a lot of psychology here that economists might not fully understand."
None of this bodes well for our future. Have we become so economically healthy that our financial discipline has evaporated?
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