The Collapse of Personal Savings Rate in America

This year’s dramatic shift in the economy found many Americans without a ‘rainy day’ fund.  Millions of Americans lost their jobs and saw their 401(k) wiped out. It is unsurprising then to see that the trend of personal savings rate has been on a fast-pace decline since the mid 1980’s, reaching decade-low levels in recent years. The following graphic shows the trend of personal savings rate per month from 1959 to 2009, along with an alarmingly opposing trend of rising consumer debt.

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