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As yes, the savings shortfall again.

The problem is we don't know whether we're saving because we don't have the right measures. The economic data aggregated to calculate national "savings" are old-economy data. If you spend less than you make and put the balance in the bank, that's counted as savings. If you buy bonds or stocks, that's counted as savings. Why? Because these are expected to pay off in the future. But if you pay college tuition, that's counted as consumption even though it will have a higher future return than investments in bonds or a diversified stock portfolio. If the U.S. counted investment in education — or, more broadly, development of knowledge capital — as savings, we'd have a much better idea of where we stood.

The problem is we don't know whether we're saving because we don't have the right measures.

You're absolutely right. This article is mostly bunk because the "personal savings" rate is not in any way a good proxy for the rate of capital formation.

Did you read the article and do you know what the article is about.

there is no doubt that americans do not save enough because every statistic shows you that and if you don´t believe in the saving rate or the definition you will have to believe in the current account deficit and the trade deficit.

by the way it does not make a difference for the problem mentioned in the article or the general macroeconomic situation if you "invest" your money in education or if you buy a car or anything else. There is no argument why someone should count spending on education as savings. so if you buy a computer and in fifteen years your kit becomes a second Bill Gates you should better count your computer spending today as savings but also your car because who knows perhaps your kid becomes a second michael schumacher. So believe me your new car is not consumption it is saving and you have a lot to spent with all these savings in you house.