The savings rate doesn't include home equity or unrealized capital gains. When you realize capital gains, they are ignored but the capital gains tax paid is subtracted from savings. Not the most useful stat the Feds publish.
We have more because we borrow more.
And yet our net worth, assets minus liabilities, is higher than ever.
Keep singing Don't Worry, Be Happy as we circle the drain.
Math is hard.
Using the rate of savings to prove that we're doomed has always made me laugh. As if we should be putting our cash in passbook savings instead of the stock market. LOL!
No doubt Lucysmom thinks 1982 represented great economic times since the savings rate was a whopping 12%. Recessions tend to have a positive impact on the rate of savings as calculated by the government.