Professor Mark J. Perry's Blog for Economics and Finance
According to today's BEA report on "Personal Income and Outlays," personal savings (percent of disposable personal income) was 4.8% in December, and the average savings rate for 2009 was 4.575%, the highest annual average rate since 5.26% in 1998.
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
3 Comments:
Saving at least 10% is sage and proven good advice - personally and nationally.
BTW, the figures for the dramatic drop in savings correlates with our starting to have kids (mid 80's) and rise as they begin to leave home in 2004 and later! Sorry that our family warped the figures so much.
Sometimes I think it's pointless to bother saving my money when Obama and the Democrats are busy hurtling us into national bankruptcy. My savings will be worthless when the hyperinflation kicks in.
I have to agree with Paul, saving money is a risky business requiring eternal vigilance. The government is ever trying to devise ways of confiscating the savings of those who live their lives responsibly, either through taxation, inflation or outright confiscation (see FDR's confiscation of individual gold holdings).
Obama's advisors are currently looking at mandating that all 401k holdings be turned into annuities managed by Social Security. The government would then determine your payout and keep the remainder upon your death. Even if they fail to get this passed, be assured that they will devise a scheme of taxation to accomplish the same ends. Welcome to the new "progressive" United States.
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