10 votes

US savings rate hits record 33% as coronavirus causes Americans to stockpile cash, curb spending

6 comments

  1. [2]
    Hidegger
    Link
    People who have savings accounts on average were raised $1200 after giving all of them a $1200 stimulus check... This is the dumbest shit. Many business are shut down and people are still told to...

    People who have savings accounts on average were raised $1200 after giving all of them a $1200 stimulus check... This is the dumbest shit. Many business are shut down and people are still told to isolate, for people who have a surplus of money to have a savings account why would you be spending it now instead of waiting until businesses reopen or looking at it as finally having so backup plan money since we are talking about an average (extra cash fund) of only $1550.
    Right now people can't vacation, can't ship things very fast and certainly not overseas, can't dine out or enjoy any public entertainment, aren't particularly apt to invite workers into their home for renovations or fixes. Come back in a year after things have normalized a bit and see how much these people actually use their small savings amount.

    3 votes
    1. skybrian
      Link Parent
      Yeah, this data is for April and it's consistent with what we know happened in April. It would be surprising if the stimulus check and the big changes to peoples' lives didn't show up on the chart.

      Yeah, this data is for April and it's consistent with what we know happened in April. It would be surprising if the stimulus check and the big changes to peoples' lives didn't show up on the chart.

  2. [4]
    skybrian
    (edited )
    Link
    From the article: Also, Kevin Drum posted a graph of per-capita savings. Averages can obscure so I'd want to see more of a breakdown, but going from ~350 to ~1550 in savings seems significant...

    From the article:

    Saving during the Covid-19 pandemic is especially unique due to the shutdowns. Hundreds of thousands of small and large businesses shuttered their doors in an effort to curb the fast-spreading virus.

    There is an aspect of “forced savings,” said Swonk.

    “There’s not much opportunity for many people to go out and spend money,” said Megan Greene, a senior fellow at Harvard Kennedy School. “With shops all closed and everybody locked up, the ‘shopportunities’ have dried up. That speaks to a kind of demand shock.”

    Also, Kevin Drum posted a graph of per-capita savings. Averages can obscure so I'd want to see more of a breakdown, but going from ~350 to ~1550 in savings seems significant (though still very low)? How much of that is the stimulus checks?

    1 vote
    1. [3]
      teaearlgraycold
      Link Parent
      I feel really out of touch saying this, but is that monthly savings or a total savings account balance?

      I feel really out of touch saying this, but is that monthly savings or a total savings account balance?

      1 vote
      1. skybrian
        Link Parent
        I tried figuring out how this was calculated on the FRED site and ended up confused. I think it must be a monthly amount because total savings looks a lot higher (in 2018):

        I tried figuring out how this was calculated on the FRED site and ended up confused. I think it must be a monthly amount because total savings looks a lot higher (in 2018):

        3 votes