Since I like to point out economic indicators that suggest the US economy is relatively strong, I should also point out some things that aren’t such good news: Personal savings drop to a 74-year low:
The Commerce Department reported Thursday that the savings rate for all of 2006 was a negative 1 percent, meaning that not only did people spend all the money they earned but they also dipped into savings or increased borrowing to finance purchases.
As tax rates are down, employment is up, and inflation is fairly tame, this seems to suggest personal habits and is not really a reflection on the national economy. Still, it’s a troubling trend that could impact the national economy down the road.
I know that I don’t save as much as I’d like. But, like my salary, I don’t know if I’d ever really think more wouldn’t be better.