Current Issues in Economics and Finance

A Nation of Spendthrifts? An Analysis of Trends in Personal and Gross Saving

September 2000Volume 6, Number 10
JEL classification: E21, E22

Authors: Richard Peach and Charles Steindel

The steep drop in the U.S. personal saving rate over the last decade has fueled speculation that Americans are spending recklessly. But alternative measures of personal saving show that households are actually setting aside a larger share of their resources than the official figures suggest. In addition, government saving has risen markedly, leading to an increase in overall domestic saving that has helped finance a surge in U.S. investment.

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