Saving and Investing: Equilibrium at Work
During of the second quarter of 2020, the personal savings rate in the United States jumped to 25.6 percent; the annual average for 2019 was 7.9 percent. So people saved slightly more than a quarter of their disposable personal income in Q2 2020 compared to about one-thirteenth the previous year. Consumers responded to COVID-19 by increasing their savings and reducing their spending. Some of it was unintentional, as some types of spending were virtually eliminated, like travel and dining out. But people also cut back intentionally out of concern over layoffs and furloughs and getting through uncertain times. Those savings then made their way into some form of investment.
Investment takes many ...
Get Understanding Economic Equilibrium now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
