How am I supposed to interpret this? That we're currently at the same point we were just before the 2008 GFC?
Because that's how I read it, and I hope it isn't a rhyme.
Because that's how I read it, and I hope it isn't a rhyme.
i think instead of thinking of it as saving, it's more "unable to spend". Now that they are able to spend again, they do.
There was never an intentional savings spree imho.
EDIT: Never mind. Personal savings are still stable [2]. Net savings included federal deficits.
The median is the relatively ugly picture.
The average American has invested a lot in housing and equities, both of which have soared over the past 20-30 years.
The average wealth per adult in the US is ~$550,000. That's just behind Luxembourg for #2 in the world (led by Switzerland at $685,000). That's a shocking average figure for a nation with 250+ million adults. It's closing in on double that of Sweden, and it's 2/3 higher than the UK or France. It's well over double that of Germany. It's also far higher than very affluent Norway. The US Gini figure is also lower than Sweden now (Sweden has become one of the most unbalanced affluent societies due to their horribly failed immigration integration over the past decade or so).
If you're American, you definitely want to be average (or above), not median.
How about the median wealth per adult? ~$107,000 for the US. That's above Austria, Germany, Sweden, Finland, Japan, Singapore, Spain, Italy. And it's below the Netherlands, France, Canada, Norway, UK, etc.
Germany's median wealth per adult is a mere $66,000. They should be asking some serious questions. Greece is at $53,000 and Portugal is at $70,000 for refence. The UK is up at $151,000, with France and Canada around the $135,000 area.
A lot of this is related to differences in (a) rate of home ownership, and general structure of the housing market, and (b) how pensions work. There's some messiness, but in general these measures of wealth don't account for defined benefit pensions (ie a pension where you get X$, inflation adjusted, per month until you die) very well.
Mean: about +22% Median: about +35% Median within the poorest 25% of households: +900% (!)
Isn't that because most of that "wealth" is from inflated prices of houses? Over 50% of germans rent so over the median point, in US only 34%.
With so much wealth at the too, average is going to be pulled up even when there are many with relatively near zero.
Note: The discussion was on savings. Abstracting that from individual wealth adds cognitive load.
Thank God Americans aren't dumb enough to let their money rot in an account that gives virtually no benefit.
They take what people make, then subtract out money spent on goods, services, and taxes, and interest payments. The money left over is what is considered.
Then again, Americans have other options to park their assets that are far better places of retaining capital AND growth at the same time, housing being one, stocks being another, bonds being the third worst. So FDIC is about as good as BFR will ever lend you, and currently that means what I noted above - a dumb fucking decision.
negative savings rates are hard and brutal depression territory.