[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-322003-105":3,"doc-detail-322003-en":81,"detail-sidebar-cat-0-en-105":99},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","are-we-saving-enough-an-economic-commentary","Are We Saving Enough? - An Economic Commentary","","Are We Saving Enough? analyzes the behavior of U.S. household and national saving over the last two decades, explaining why the economic boom driven by stronger consumer demand can be unsustainable. It links lower personal saving to higher consumption, describes how reduced national saving constrains domestic investment and shifts capital ownership toward foreigners. It also evaluates retirement-saving adequacy in light of Social Security and Medicare shortfalls and longer life expectancy.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/are-we-saving-enough-an-economic-commentary/322003/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/are-we-saving-enough-an-economic-commentary/322003.png","ImageObject",300,407,{"name":42,"@type":43},"Skyler","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-11-05","2026-09-21",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",10,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"Why does the current economic boom raise concerns about long-run sustainability?","Question",{"text":63,"@type":64},"Because faster growth tied to stronger consumer demand tends to mean lower saving and fewer resources available for investment, which makes the growth pattern unlikely to last.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"How has national saving changed in the United States since the 1970s?",{"text":68,"@type":64},"National saving declined substantially, moving from over 9% in the 1960s and 1970s to 6% in the 1980s and further to about 4.7% in the 1990s.",{"name":70,"@type":61,"acceptedAnswer":71},"What is the relationship between saving and investment in the document?",{"text":72,"@type":64},"Saving finances investment, so net domestic investment tends to follow national saving; when national saving falls, investment capacity and the future income accruing to Americans are affected.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},322003,1790383960,{"code":4,"msg":82,"data":83},"success",{"doc_id":79,"user_id":84,"nickname":42,"user_avatar":85,"doc_module":4,"category_id":86,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":87,"file_id":88,"file_url":89,"file_type":90,"file_size":91,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":92,"language":93,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":94,"faqs":95,"seo_title":96,"seo_description":12,"update_tm":97,"read_time":98,"preview_page_count":4},2336464648746,"https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c",8,"# Are We Saving Enough?\n\nby Jagadeesh Gokhale  \nlhe U.S.economy has exhibited con-siderable vitality during the last two dec-ades.There have been only two reces-sions,one of which (in 1991)was verymild.During the last five years,eco-nomic growth has occurred at a muchfaster pace than the rate economists pre-viously thought was sustainable over thelong run.  \nA significant feature of the current eco-nomic boom—one to which many ob-servers attribute today's good economictimes—is the strength in consumer de-mand.Unfortunately,because greaterconsumption means lower saving andfewer resources available for investment.a surge in economic growth fueled bygreater consumption is unlikely to last.  \nDevoting a greater share of output toconsumption will squeeze saving andinvestment to the point where little ornothing is left for adding to,orevenreplacing,the nation's capital stock.Although the capital stock could con-tinue to grow because of foreign capitalinflows.low nationa saving wil reduceAmericans'share in its ownership.andcapital income will increasingly accrueto foreigners.A continued dependenceon foreign capital inflows will benefitfuture Americans less than if domesticinvestment were financed throughgreater national saving.  \nU.S.houscholds may be saving very littlebecause,in theirview,resources forfuture consumption are adequate andsecure.However,projections of SocialSecurity and Medicare—important pil-lars of retirement security—suggest thatfinancial shortfalls will begin to occurs0on after the first decade of this century,Moreover,lengthening life spans implythat a failure to save adequately willworsen retiree living standards or force a  \npostponement of retirement—both ofwhich imply lower economic welfare  \nThis Economic Commentaryexaminesthe behavior of U.S.household andnational saving during the last twodecades.It analyzes households'motiva-tions to save and discusses the role thatsaving plays in improving living stan-dards.Finally,it explores how muchthose about to retire might need to saveto adequately prepare for retirement.  \n■ Saving in the United StatesThe United States has experienced asus-tained decline in national saving sincethe cearly 1970s.National saving—mea-sured as the share of national output notconsumed by households and the gov-ernment—averaged well over 9 percentduring the 1960s and 70s,but thendropped to 6percent in the 1980s,andfurther to 4.7 percent during the 19905,(see figure 1).  \nNational saving can be divided into pri-vate and government saving,and privatesaving can,in turn.be divided into thatdone by households and by businesses.The conventional method of dividingnational saving into its constituent partssuggests that the biggest source of de-cline in national saving is lower privatesaving.Indeed,personal saving,onecomponent of private saving,reached anall-time low of 2.4 percent in 1999  \nLower private saving is a direct conse-quence of higher private consumption.²Personal consumption expenditure as ashare of net national output has trendedupward for three decades.This sharerose from 68.3 percent during the 1960sto 76.0 percent during the 1990s.In1999,it was 77.2 percent,suggestingthat a reversal is not yet in sight.Despitethe recent improvement in government  \nAmericans are saving less than theyused to.They have selected a curioustime to change their habits—thenumber of years people spend inretirement is growing,and SocialSecurity continues to suffer fromlong-term financial shortfalls.ThisEeonomic Commentary suggests thatsaving rates would have to be muchhigher for most American house-holds if they are to maintain theirliving standards through retirement.  \nsaving via the elimination of federaldeficits,national saving remains atabout half its rate during the 1960s and70s and is among the lowest in thedeveloped world.³  \n■ Saving and InvestmentSaving finances investment,and one mayexpect the path of net domestic invest-ment over time to follow that of nationalsaving.During the 1960s and 70s,net","cbCail2rAnDiqGqx","https://ap.wps.com/l/cbCail2rAnDiqGqx","pdf",1374271,5,"English","# Are We Saving Enough?\n## Saving in the United States\n## Saving and Investment\n## Why Save?","[{\"question\":\"Why does the current economic boom raise concerns about long-run sustainability?\",\"answer\":\"Because faster growth tied to stronger consumer demand tends to mean lower saving and fewer resources available for investment, which makes the growth pattern unlikely to last.\"},{\"question\":\"How has national saving changed in the United States since the 1970s?\",\"answer\":\"National saving declined substantially, moving from over 9% in the 1960s and 1970s to 6% in the 1980s and further to about 4.7% in the 1990s.\"},{\"question\":\"What is the relationship between saving and investment in the document?\",\"answer\":\"Saving finances investment, so net domestic investment tends to follow national saving; when national saving falls, investment capacity and the future income accruing to Americans are affected.\"}]","Are We Saving Enough? - An Economic Commentary | 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