You should include actual *links* when you claim to be posting an 'economic statistic' so the original source data can be examined in detail (for it's methodology and limitations and exclusions, etc.)
For example: I'm fairly sure that the (not-linked <g>) article you made reference to was utilizing recent NOMINAL (i.e.: not yet inflation adjusted) figures.
Some examples (with links to source material included <g>):
Most current figures:
U.S. savings rate falls to zero - MSN Money (by Christian Science Monitor) --- NOTE --- the 'zero' figure reported by the US Commerce Department is a nominal figure. When adjusted for the monetary inflation rate to create the 'real' figure it MOST-ASSUREDLY is a SUB-ZERO Savings Rate:
...Tuesday, the Commerce Department reported that the personal savings rate fell to zero in June, the lowest since a one-month buying binge in the aftermath of the 9/11 attacks. The United States is on track to record a savings rate for the year below 1%, which would be the lowest since the depths of the Great Depression, when the rate turned negative.
articles.moneycentral.msn.com
A longer-term view of the Real "personal savings rate" (Should we be proud that families have the lowest rates of saving since 1929 and historic record debt ratios, compared to the past?):
SAVINGS PLUMMET - a record low in world history
The chart at the left shows a 48 year trend of that part of disposable income that has been saved - - called 'personal savings rate'.
Note: prior to 1970 the rate of personal savings was rising smartly - - as were family incomes - despite most families then having but one wage earner while also living without increasing debt ratios (chart below).
As family incomes continued to stagnate, despite more mothers in the work-force, it follows that later the saving ratio stopped rising as seen in the left chart.
As inflation-adjusted family incomes continued to stagnate the saving ratio started falling rapidly - - plummeting since 1992.
As of Summer 2007, savings were negative 1.3 percent - an all-time record low!! Also a record low for any leading global economic power in the modern history of the world, per economist Steven Roach Nov. 2006.
In 2005 consumers drew down savings by over $200 billion compared to the prior year, the biggest dip in savings since record-keeping began in 1929 (Bloomberg).
$1.1 Trillion in savings was missing in 2005 compared to had the savings ratio been as 2 decades ago. (Realized capital gains/losses, if any, are not included in the personal savings calculation, and may slightly mitigate this chart if one wishes to call such savings. Nevertheless, the trend with and without is at an all-time record low)....
Americans have not saved so little since the depression of the 1930s - they have been on a spending binge, well beyond growth of their incomes. (Bloomberg Jan 2006)
mwhodges.home.att.net |
