Food prices are surging, gas is becoming more and more expensive along with everything else including real estate, and Covid is still lingering. All of this makes for a bad concoction that injures the economy greatly. In 2008 we saw the Great Recession, and now, foreign banks have predicted that we are headed to another recession. Data from the U.S. Bureau of Economic Analysis shows that Americans are saving less money at any point since the Great Recession.
This shows that American households are running low on money because of the skyrocketing prices of everything. The personal savings rate has been trending lower and lower since January (6.0%), March (5.0%), to April (4.4%).
The chart below shows the decline of personal savings amongst Americans. One can also see how during the pandemic, the savings rate looked to be at an all-time high with the release of multiple rounds of stimulus checks. Will the savings rate dip below the Great Recession savings rate or will the Biden administration save America?
