National Savings Rate
What is the National Savings Rate?
The national savings rate is the percentage of gross domestic product that households, governments and businesses save rather than spend.
How Does the National Savings Rate Work?
There are only two things to do with money: spend it or save it. By definition, the national savings rate is the amount of personal income and personal consumption expenditures. More intuitively, it includes the items people typically associate with savings: in 401(k)s, IRA contributions, employer contributions to retirement plans, into mutual , and savings accounts.
The Bureau of Economic Analysis studies the national savings rate.
Why Does the National Savings Rate Matter?
Increases in national savings rates indicate that a company is developing, and decreases in national savings rates indicate that households are consuming more than their after-tax savings almost certainly contributed to the of foreclosures and expansion in government programs during the Great . Low national savings rate also tend to precede growing dependence on capital from foreign individuals.allow. In the United States, the national savings rate famously declined beginning in the 1990s, and this lack of