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I wonder if 'net saving' here includes businesses/government or just households. Noah Smith wrote a nice piece here https://www.noahpinion.blog/p/great-news-abo
by probablynish 3y ago
I wonder if 'net saving' here includes businesses/government or just households. Noah Smith wrote a nice piece here https://www.noahpinion.blog/p/great-news-about-american-wealth https://www.noahpinion.blog/p/great-news-about-american-weal... breaking down Federal Reserve data that shows how net wealth of American households increased a lot from 2019 to 2022 - after adjusting for inflation, and even more so for poorer households.
https://fred.stlouisfed.org/series/PSAVERT https://fred.stlouisfed.org/series/PSAVERT - this data series is labelled "Personal Savings Rate" and shows a big spike over the pandemic years, which would square with the increase in household net wealth. Maybe 'personal savings rate' refers to households, and so the story here is a transfer of wealth from the government to households over the pandemic years?
Of course (now I'm really extrapolating) the govt is just funded by taxes, so maybe that further reduces to a transfer of wealth from future households/businesses to current households.
- mikeyouse 3y agoYou're correct - it includes all saving -- households, businesses and government - net private saving which is households + businesses has been strong: https://fred.stlouisfed.org/series/W202RC1Q027SBEA https://fred.stlouisfed.org/series/W202RC1Q027SBEA But Government saving is obviously in a pretty big deficit: https://fred.stlouisfed.org/series/TGDEF https://fred.stlouisfed.org/series/TGDEF
- probablynish 3y agoThanks, that makes sense. I wonder to what extent the two rates are directly linked - household savings coming from direct govt transfers like covid stimulus checks and student debt forgiveness.