Christian Science Monior: US savings picture brightens a little
Americans didn't spend more than they made last year, newly revised figures show, but debt remains a problem for many.
America still has debt problems, but as of this week the phrase "negative savings rate" no longer applies to the nation's household habits.
Through June of this year, US citizens have socked away $164 billion. Moreover, in releasing its annual revision of prior-year data, the Commerce Department now says that Americans earned more income than they spent in 2005 and 2006 – a reversal of prior tallies showing a negative savings rate for those years.
This doesn't mean that no debt burden hangs over American households. But it indicates a healthier outlook for consumer finances – a welcome boost as the economy navigates the worst housing-market slump in a generation.
The improving savings picture also hints that reform is possible – perhaps even inevitable – for a nation that, by some measures, still lives on the financial edge. …
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