The United States savings rate runs to 3.20% — down from 3.60% one month prior.
As history has it, 8.47% is par. Meantime, 36% of Americans carry more credit card debt upon their shoulders than emergency savings in their pockets.
Mainstream economists inform us it is not a symptom of economic distress. It is rather a symptom of economic vigor. For example, Ameriprise Financial’s Russell Price: Consumers still have a lot of money left over to be able to spend, so the credit card data is often misinterpreted.
The dollar value of credit card debt is at an all-time high, but so is population, employment and consumer income. Yet we are not half so-convinced. The Centrality of Savings If the United States savings rate jumped in tandem with its credit card debt, it would not fluster us.
Our ears would be opened wide to this fellow’s belchings. Yet the United States savings rate has not jumped in tandem with its credit card debt. It is instead running the other way as debt gallops and gallops.
And as we have argued before, savings form the granite bedrock of a sound economy. Modern economics has waged warfare upon savings..
. and prudence. If all saved too much money a savage cycle would feed and feed upon itself.
.. until the economy is devoured to the final crumbs.
Consumption would dwindle to near-nonexistence. The gross domestic product would collapse in a heap. Waves of bankruptcies would wash through the national economic apparatus.
All this owes to the recalcitrance of sav.
