On 10/29/05, Michael Perelman <[EMAIL PROTECTED]> wrote: > is the 1.1% negative savings rate unprecedented?
yes, according to Dean Baker: GDP Byte/October 28, 2005 Savings Rate Goes Negative as Consumption Drives Growth By Dean Baker GDP grew at a solid 3.8 percent annual rate in the third quarter, driven primarily by another quarter of strong consumption growth. The 3.9 percent annual rate of consumption growth far outstripped income growth, pushing the savings rate down to negative 1.1 percent. This is the first quarter ever in which households were reported to have a negative savings rate. The other major factor spurring the economy was a 10.2 percent surge in defense spending, which added 0.47 percentage points to the growth rate. Investment grew at a relatively weak 6.2 percent annual rate..... [CEPR's GDP Byte is published quarterly upon release of the Bureau of Economic Analysis' report on the Gross Domestic Product. For more information or to subscribe by fax or email contact CEPR at 202-293-5380 ext. 102 or georges at cepr dot net. ] -------------- if saving behavior reverts to a more normal rate, then that would cause more than a mere slowdown. -- Jim Devine "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante.
