Lauren Templeton and Scott Phillips, coauthors of Investing the Templeton Way, will provide their analysis on John Templeton’s Buena Vista speech on the economic vices and virtues in upcoming posts. Please consider entering our contest on this topic for a chance to win $500.
Finally, the U.S. economy also ranks high on Sir John’s virtue of integrity. During the past twelve months the U.S. population has demonstrated, through many public acts and even elections, that it does not desire the government’s strategy of adding more public debt to the current balances. This can be easily viewed in a number of grass-roots political movements including the Tea Party, as well as the election of Massachusetts Senator Scott Brown. Given that the fundamental drivers supporting this political activism have been a rebuttal of increased government spending and national debt (that represents irresponsibility), we can see that the virtue of financial integrity is alive and well among the citizens of the U.S. This virtue can also clearly be seen in the sharp rise in the personal savings rate among Americans during the past twelve months.
As we can see, while the U.S. economy has demonstrated periods of economic vice, it appears that it is underpinned by strong virtue and has been for some time.