The ultimate explanation for the low savings rate seems to be that people are myopic. In other words, people implicitly care more about having stuff now, rather than later. But that too can’t be the full picture.
What makes you think that this isn’t the full picture (or most of the full picture?)
Myopia is the ultimate explanation, but it’s also incomplete. As explained in the linked paper, there’s a wealth of data showing that people spend a lot on consumption that doesn’t seem to raise their physical welfare. For example, people a lot on funerals even in places where people aren’t getting adequate nutrition.
What makes you think that this isn’t the full picture (or most of the full picture?)
Myopia is the ultimate explanation, but it’s also incomplete. As explained in the linked paper, there’s a wealth of data showing that people spend a lot on consumption that doesn’t seem to raise their physical welfare. For example, people a lot on funerals even in places where people aren’t getting adequate nutrition.