Yes the money in savings will dwindle. In my opinion this excess savings is a bigger part of the “great resignation” than the media is saying. The economic media is mostly saying it is A. fear of covid and B. lack of childcare owing to school closures that is keeping women, especially, out of the workforce.
I opine that it’s also the fact that a lot of households have enough cash RIGHT NOW, that people have the choice NOT to go to kind of awful jobs, like cashier, warehouse worker, trucker, haircutter, busboy. That’s a big part of the inflation problem. Companies are paying up to get that staff, and needing to charge more for their products accordingly. Government spending led to inflation. But it SHOULD be transitory, because of what you point out. The people will run out of this cash, and have to go back to stocking shelves and canning dog food.
“choice NOT to go to kind of awful jobs, like cashier, warehouse worker, trucker, haircutter, busboy.”
Wow that’s quite the condescending list…….
Let me guess, college educated white collar with a libertarian bent?