U.S. Savings Rate = 0%

Monday, August 08, 2005 | 05:45 AM

The Christian Science Monitor 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:
>

P2b

>
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. . .

>

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

Monday, August 08, 2005 | 05:45 AM | Permalink | Comments (14) | TrackBack (1)
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» The Big Picture: U.S. Savings Rate = 0% from California Dreamin' with the Hasson
One of the biggest lessons to learn is good stewardship of your money. Regardless of your financial worldview, be it a Christian worldview like ours, or a basic secular look at finances, it is obvious that increased savings equals financial [Read More]

Tracked on Aug 8, 2005 2:59:18 PM

Comments

"Some groups are cranking up advertising campaigns to try to
remind Americans that they don't need to participate in every sale."


And yet consumer spending is one of the few things that is driving
the economy.

So what should we do? Keep spending (and not saving) so the
economy doesn't collapse, or stop spending and start saving so
we'll have savings when the economy collapses?

Decisions, decisions... :-)

Posted by: Anon Y. Mouse | Aug 8, 2005 7:22:12 AM

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