Personal Savings Rate, USA: Dec. 2011

Gary North

Jan 30, 2012

The Federal Reserve Bank has published this. It ends in late December, 2011

The rate rises in recessions, then falls. It falls to a lower rate. Americans have changed their attitude toward the future. They have become present-oriented. They have moved from upper class to lower class, according to Edward Banfield's definition in The Unheavenly City (1970). This is a great reversal in the character of Americans. It means that our rate of economic growth cannot be maintained. Our capital is being supplied from abroad. The profits from this capital will increasingly go abroad, or else end in a great economic default when Washington defaults on its debt.