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U.S. Savings Rate = 0%

Posted By Barry Ritholtz On August 8, 2005 @ 5:45 am In Economy | Comments Disabled

The Christian Science Monitor [1] reports that "Americans have stopped saving for a rainy day. Instead, they are living paycheck to paycheck, depending on credit cards to get them through emergencies, and hoping that the rising value of their homes will give them a retirement nest egg."

This is a pretty telling chart:
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P2b [2]

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I’d like to see a longer, multi-year (or multi-decade) version of this.

Here’s some more:

"The nation’s paucity of savings is raising alarms from the Federal Reserve to consumer watchdogs who worry that the nation is counting on foreign savings to maintain a spendthrift lifestyle. Some groups are cranking up advertising campaigns to try to remind Americans that they don’t need to participate in every sale.

And there are now high-level suggestions that the tax system needs to be changed to encourage savings instead of spending."

Pretty intriguing. . .

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Source:

Spendthrift nation

By Alexandra Marks and Ron Scherer
The Christian Science Monitor, August 03, 2005
http://csmonitor.com/2005/0803/p01s02-usec.html?s=itm


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URLs in this post:

[1] The Christian Science Monitor: http://csmonitor.com/2005/0803/p01s02-usec.html?s=itm

[2] Image: http://bigpicture.typepad.com/photos/uncategorized/p2b.gif

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