The falling saving rate is a worrying trend. A low stock of savings increases vulnerability to economic shocks.
So says the Economist. Lest you think the downward trend in savings is a recent phenomenon, look at this trend over the past generation:
Our savings rate is very much a statement about how Americans feel about the future – or, more specifically, how we value it. A low savings rate signals a declining sense that investing, hoping, and preparing are all less valuable than they used to be.