Personal Saving Rate
The personal saving rate is a measure of how much of their disposable income individuals are saving. It is calculated by taking the total amount of money saved by individuals in a given period and dividing it by their total disposable income. The personal saving rate is an important indicator of economic health, as it reflects the ability of individuals to save for the future. It is also an important factor in determining the level of economic growth, as it indicates the level of consumer spending.
History of the Term
The concept of personal saving rate has been around since the early 19th century, when economists began to measure the amount of money individuals were saving as a percentage of their disposable income. The term was first used in the United States in the 1930s, when the Great Depression caused a sharp decline in the personal saving rate. Since then, the personal saving rate has been used to measure the level of economic activity in the United States and other countries.
Comparison Table
| Country | Personal Saving Rate (2018) |
|---|---|
| United States | 7.2% |
| Japan | 2.2% |
| Germany | 7.9% |
| United Kingdom | 3.3% |
| France | 7.1% |
Summary
The personal saving rate is an important indicator of economic health, as it reflects the ability of individuals to save for the future. It is calculated by taking the total amount of money saved by individuals in a given period and dividing it by their total disposable income. The personal saving rate has been used to measure the level of economic activity in the United States and other countries since the 1930s. For more information on the personal saving rate, visit the websites of the U.S. Bureau of Economic Analysis, the World Bank, and the International Monetary Fund.
See Also
- Gross Domestic Product (GDP)
- Consumer Price Index (CPI)
- Inflation Rate
- Unemployment Rate
- Interest Rate
- Balance of Payments
- Exchange Rate
- Gross National Product (GNP)
- National Debt
- Gross Investment
