Beijing time:2022-12-24 11:17
[New Tang Dynasty News, Beijing time, December 24, 2022]After three years of the epidemic, the personal savings rate of Americans has been falling from the highest point in 2020, hitting a record low since 2005. What caused the shrinking of Americans’ wallets? Come see the report.
Retaliatory consumption after the epidemic has led to less and less savings for Americans. According to data from the U.S. Bureau of Economic Analysis, the personal savings rate of Americans has dropped from 33.8% in April 2020 to 7.3% in 2021, and this year it has dropped to 2.3%, the lowest point since July 2005.
The Bureau of Economic Analysis explains that the personal savings rate is the percentage of income remaining after taxes and consumption.
In the early days of the pandemic, when restaurants and entertainment venues were closed, Americans had fewer places to spend their money, so savings rates rose sharply. Arabinda Basistha, a professor of economics at West Virginia University, analyzed that the current low savings rate reflects high consumption delayed due to the epidemic. In addition, the government’s financial support in the past three years has also increased people’s willingness to consume.
A June Federal Reserve report found that 36 percent of Americans could not cover a $400 emergency expense. Money firms point out that many people are unable to balance necessary expenses with personal enjoyment, and putting income, expenses and savings in the same account is a big problem.
New Tang Dynasty TV reporter Zhang Boyuan comprehensive report
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