Saving and Investment

Americans: Investors As Well As Savers

Economists have noted for many years that Americans don't save as much of their disposable income as workers in many other countries do -- the Japanese, for example. But when other relevant factors are considered, the U.S. savings rate looks considerably better than the 5 percent currently being reported.

  • When business savings are included and the government deficit subtracted, total national savings rise to 15 percent of GDP in the U.S.

  • Moreover, the U.S. investment rate stands at 16 percent.

  • That is still roughly only half the savings and investment rates of the Japanese -- 31 percent and 29 percent respectively.

Source: Ed Rubenstein, "Right Data," National Review, December 31, 1997.

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