Americans Don’t Save Much, But Their Companies Do
High current business savings may help make an economy more resistant to recession and lead to a higher standard of living.
Cash can be deposited, too.
Photographer: Gado/Archive PhotosAmericans’ low personal saving rate — it currently stands at 4.7% — may seem like cause for worry. The good news, however, is that Americans can count on their corporations to do a lot of savings for them.
Big business is a major force in American life as it is in few other countries, and one of the virtues (and drawbacks) of this arrangement is that it lets Americans spend like crazy: Consumer spending rose by 1.1% last month, the biggest monthly rise in almost two years. The result is a recession-resilient economy — in relative terms at least — and higher levels of consumption, and thus higher living standards.