This graph is intended to show that US citizens are spending more than they make and that Americans over consume. But is that the whole picture? Say that Juan goes to the bank to save his disposable income and finds that interest rates on a passbook is .058. It's hardly worth it for him to save that money especially when inflation is 5.6%. If Juan saves h is money he actually is worse off so he spends it. If he saved his money, he would have less buying power in the future than he would have right now. Americans are just behaving rationally. (Click to enlarge. Graph is from the New York Fed.)
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