The Christian Science Monitor reports that "Americans have stopped saving for a rainy day. Instead, they are living paycheck to paycheck, depending on credit cards to get them through emergencies, and hoping that the rising value of their homes will give them a retirement nest egg."
This is a pretty telling chart:
I’d like to see a longer, multi-year (or multi-decade) version of this.
Here’s some more:
"The nation’s paucity of savings is raising alarms from the Federal Reserve to consumer watchdogs who worry that the nation is counting on foreign savings to maintain a spendthrift lifestyle. Some groups are cranking up advertising campaigns to try to remind Americans that they don’t need to participate in every sale.
And there are now high-level suggestions that the tax system needs to be changed to encourage savings instead of spending."
Pretty intriguing. . .
By Alexandra Marks and Ron Scherer
The Christian Science Monitor, August 03, 2005