Those who decry administration policies relating to savings and investment because they benefit mostly the rich ignore an economic truth that belies this notion.

The calculation of these critics posits that affluence equals saving, which has it exactly backward. Except for the relative few who inherit their wealth, the reality is that saving equals affluence.

The savings habit isn't something a person magically acquires upon becoming well-off. It is a discipline developed over time. It is nothing less than deferring gratification by delaying consumption of a given portion of one's income. Even those at the lowest income levels can find ways to save if they adhere to the savings habit.

Certainly it's true that fiscal initiatives reducing the tax burden on savings' returns favor those with the biggest savings, who are usually older savers who've had more time to nurture their nest egg. At the same time, however, these same policies also encourage younger workers to develop the habit of thrift that will give them a chance to achieve affluence.

We know this is an economic truth because the current generation of senior Americans is, generally speaking, the most affluent elderly cohort in human experience. Much of their aggregate affluence is the result of a dedication to thrift forged by the hard times of the '30s.

They either experienced Depression hardship firsthand or its lesson was drilled into them by their parents. The lesson was that pursuit of financial security is worth the sacrifices it demands. Meantime, the succeeding baby boom generation is now approaching its golden years in what also appears to be an equally affluent state.

Both cohorts were helped immensely in their quest for financial security by tax-advantaged savings vehicles created by government to encourage savings for retirement. The myriad incentives essentially were either personal retirement plans or employer-sponsored plans.

Since savings is a learned behavior, often passed down from parents, many would have built nest eggs without tax-sheltered savings plans. Nevertheless, it's safe to say government policies encouraging thrift provided the tipping point for many who needed an extra nudge toward the savings habit.

As a columnist writing about financial matters, I have had countless conversations with readers concerning money management matters. These discussions have convinced me earning power is not necessarily a valid predictor of saving power. Many of the thousands with whom I've talked over nearly three decades have managed to accumulate impressive amounts of wealth while earning average or even below-average incomes.

There is a common misperception in certain circles that most average working folk can't be trusted to make good decisions when managing their financial affairs. This is a generalization that, in my experience, doesn't hold water.

Given the right encouragement and economic incentives, people will generally do what's in their best interests. They understand how money makes money, and any policy that enhances the after-tax return of their moneymaking will reinforce responsible economic behavior.