The annual savings rate dropped to the lowest level in 74 years, the Commerce Department has reported. On average, Americans saved a “negative 1 percent” in 2006, meaning people not only didn’t save but dipped into their savings and borrowed in order to spend more than their income.
The Federal Reserve finds that the average family has only about $3,800 in the bank, no retirement account and no stocks or bonds, and can’t pay off a $2,200 credit card balance. Pretty grim…. But don’t fear. Tax cuts for the rich will make everything all better.