Has America’s Consumer Spending Bubble Popped?

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Economy graphicSince 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?

 

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