• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Texas A&M Forest Service
  • Texas A&M Veterinary Medical Diagnostics Laboratory
  • Texas A&M AgriLife Extension Service
  • Texas A&M AgriLife Research
  • Texas A&M College of Agrculture and Life Sciences
Ellison Chair in International Floriculture
Ellison Chair in International FloricultureTeaching, Research, Extension and Service
  • Menu
  • #1593 (no title)
  • Benefits of Plants and Greenscapes
  • Plants, Nature, and Health Initiative
  • Marketing & Economics
  • Water Resources
  • Sustainability
  • Executive Academy for Growth & Leadership (EAGL)

The impact of increased savings

May 5, 2009 by Charlie

Two forces that until recently turbo-charged US consumer spending—growing household debt and a falling savings rate—have gone into reverse. In late 2008, as households started reducing their indebtedness and saving more, consumption tumbled.

New research from the McKinsey Global Institute shows that the economic impact of further US consumer deleveraging will depend on income growth. Without it, each percentage point increase in the savings rate would reduce spending by more than $100 billion—a serious drag on any recovery. Relatively healthy income growth, on the other hand, would help households reduce their debt burden without trimming consumption as much.

Filed Under: News Tagged With: recession, recovery

About the Chair

  • About the Chairholder
  • Donors
  • Contacts

Advisory Commitee

  • Overview
  • Permanent Seats
  • Rotating Seats
  • Ex-Officio Members
  • Members Emeritus
  • Early History of the Ellison Chair

Multimedia

  • Webinars
  • Distinguished Lecture Series

Conferences/Workshops

  • Executive Academy for Growth & Leadership (EAGL)
View Charlie Hall's profile on LinkedIn
Texas A&M AgriLife Extension Service
Texas A&M University System Member
  • Compact with Texans
  • Privacy and Security
  • Accessibility Policy
  • State Link Policy
  • Statewide Search
  • Veterans Benefits
  • Military Families
  • Risk, Fraud & Misconduct Hotline
  • Texas Homeland Security
  • Texas Veteran's Portal
  • Equal Opportunity
  • Open Records/Public Information