Over the period covered by these data, a drastic change has occurred in the responsibilities undertaken by the state to provide assistance to the aged, unemployed and otherwise dependent. This change has had divergent results on the particular data under discussion. The availability of assistance from the state would clearly tend to reduce the need for private reserves and so to reduce private saving-it is equivalent, in terms of our hypothesis, to a reduction in the variance of transitory components. (Milton Friedman)

Over the period covered by these data, a drastic change has occurred in the responsibilities undertaken by the state to provide assistance to the aged, unemployed and otherwise dependent. This change has had divergent results on the particular data under discussion. The availability of assistance from the state would clearly tend to reduce the need for private reserves and so to reduce private saving-it is equivalent, in terms of our hypothesis, to a reduction in the variance of transitory components.

Milton Friedman

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aged assistance availability change datum dependent discussion drastic equivalent hypothesis need particular period private reduce reduction state under undertake variance reserves

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