Since the 1980s, Americans have saved progressively less of their incomes. A few years ago, consumer saving was at its lowest level since the Great Depression. This long downward trend in savings occurred during a time of economic prosperity and was coupled with increasing consumer spending; some say America was experiencing a “bubble” of high consumer spending, building up weakness in the American economy. During the recent recession, personal saving increased and spending slowed. Has it been enough to pop the bubble?

Read this Research Brief