Americans Spend it All
Writing by Marq on Thursday, 1 of February , 2007 at 2:02 pm
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While I am say that I am not saving a vast sum, I am saving a little… This is a sign of bad things to come.
From the AP
Technorati Tags: Economic News, Life in Bushs America, savings, Social IssuesPeople once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression more than seven decades ago. The Commerce Department reported Thursday that the savings rate for all of 2006 was a negative 1 percent, meaning that not only did people spend all the money they earned but they also dipped into savings or increased borrowing to finance purchases. The 2006 figure was lower than a negative 0.4 percent in 2005 and was the poorest showing since a negative 1.5 percent savings rate in 1933 during the Great Depression.
For December, consumer spending rose a solid 0.7 percent, the best showing in five months, while incomes rose by 0.5 percent, both figures matching Wall Street expectations.
In other news, the Labor Department reported that the number of newly laid off workers filing claims for unemployment benefits dropped by 20,000 last week to 307,000. That improvement pushed the four-week average for claims to the lowest level in a year, indicating that the labor market remains healthy.
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Category: Life in Bushs America, Economic News, Social Issues
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