Whereas other leading industrialized nations have savings rates of more than 10%, notably Germany and Japan, the savings rate in the U.S. has been less than 1% for the past four years.
In the second quarter, however, it inched up toward 3%. While that will crimp consumer spending in the short term, the bigger picture is the long term; a higher savings rate should spur banks to make loans to businesses, which, in turn, will help to boost the economy, Fortune reports.
In the early 1990s, Americans saved 7%.