How has the savings rates increased in the us since 1980?

The personal savings rate has not increased in the United States since 1980. During the early 1970's the savings rate was often in excess of 12.5 percent but dipped as low as 2.5 percent in 2000 and 2008. After the financial crisis of 2008 the savings rate briefly spiked to over 7.5 percent but has since declined to a current rate of about 4.0 percent.

The reasons for the large decline in savings has been the subject of debate and study by economists. Some of the reasons why Americans find it so hard to save may be due to a higher cost of living and the lack of wage growth but the net result is that many Americans are in a perilous financial situation due to the inability to save. Recent surveys show that as many as 40 percent of Americans could not come up with as little as $2,000 in an emergency.