Posted on 12/22/2022 3:33:25 AM PST by EBH
The rate at which Americans are saving money has dipped close to an all-time low, a new report shows.
According to the U.S. Bureau of Economic Analysis, the personal savings rate dropped to 2.3% — down from 7.3% a year earlier and down from 33.8% in April 2020
In fact, this is the lowest rate since July 2005 when the rate hit a record low of 2.1%.
The U.S. personal saving rate is personal saving as a percentage of disposable personal income. In other words, it's the percentage of people's incomes left after they pay taxes and spend money, the agency explains.
During the COVID-19 pandemic, the saving rate rose significantly. With restaurants and entertainment venues closed, experts say, Americans had fewer things to spend money on.
"The current low savings rate mostly reflects higher current consumption that was postponed due to the pandemic," Arabinda Basistha, an economics professor at West Virginia University told FOX Television Stations. "The extra savings and fiscal support during the pandemic are driving the higher consumption."
He continued, "The other indicators of financial health of American families look quite stable and able to withstand moderate risks to the economy. For example, the financial obligation ratio, measuring payments on debt service, rent, auto lease, homeowners' insurance and others as a percentage of disposable income, is 14.3 percent in the second quarter of 2022. This is lower than the average 14.8 percent in 2019, and the average 17.6 percent in 2005-2007 before the great recession."
(Excerpt) Read more at fox6now.com ...
Have a Merry Christmas...
After every $100 you make, you are able to save $2.30. Wow, that is a get rich scheme right there!
We now know, we learned from the election last month, that the American voter thinks the solution to our problems is to vote more democrats in. It is that easy.
I noticed that the female voters kept the girl power going in some of the elections by re-electing the hideous leftists lamebrains. But they hug their constituents, and that is so touching.
Yep. Savings rate near all time low; credit card debt, soaring at 20% interest or more, as people charge recurring costs like utilities and rent; BLS lying about the jobs report by a million jobs. Biden says, Economy is going great guns. And these fools believe him.
Hmm. No mention of the government implemented destruction of the dollar’s purchasing commonly called inflation. Thanks, Joe, you now have beaten fellow Democrats Obama, Carter and Buchanan to become the worst president ever.
Well, duuuhh!
20% inflation rate is the worst possible taxation. It affects everything and has double affect on fuel and transportation cost.
Simple. The way to accumulate wealth is for your income to exceed your expenditures. If you can raise your income to make this happen then good for you If you must lower expenditures to make it happen then do it. That can and should include tax outlays.
Its a miracle anybody has any savings left.
Since (more or less) half the population is doing better than this, and half worse, it means a very large proportion of the population is now saving no money at all but is rather draining their savings or have no savings left and are sinking into debt.
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