[superloser]

Why is it that the U.S. savings rate on that chart was at its highest in the 1970s, when this country's economy was in the toilet?

I think you answered your own question, but add this to it: In the 1970s, the US was not an "instant gratification" society. Some vestiges of the Depression-Era still lingered. That doesn't exist anymore. Its consumption, consumption, consumption these days. People in their 20s and 30s used to save money. Now they go and party.

A lot of people are doing cash-out refis on their houses to buy cars with. Hence, the debt ratio skyrockets. Others I know are doing cash-out refis to consolodate other credit card debt. Others still are unemployed and are doing cash-out refis in order to buy groceries.

Look at it another way: Check the ads on TV. 0% financing and no payments for two years from -uh- everyone? Sounds like desperation for sales.

What say you?

[oceanview]

the term "standard of living" is at issue. what is it?

People can go out an buy a new chinese made wardrobe, and chinese DVD players, and chinese furniture. But they can't afford to pay for health insurance.

The truth is, our standard of living is only higher when measured through manufactured goods made offshore. Now that may not alone be a bad thing, because cheap foreign made goods have at least allowed americans to have subpar wage growth, and still maintain that standard of living as measured by how many goods they have. But at least we should all accept that this is what is going on, because for most people, real wages are declining.