Savings Rate Bottoms Out
In October, the personal savings rate for Americans dropped to its second-lowest level on record—dating back to 1959, when the U.S. government started compiling savings data. At its current level of 0.2 percent, a U.S. household with take-home pay of $40,000 per year, on average, tucks away $1.50 in savings each week.
By contrast, European countries like France and Germany have personal savings rates higher than 10 percent—the approximate level for Americans just two decades ago. The rate has been on a continuous decline for the simple reason that personal consumption has increased more rapidly than American incomes.