Americans need to save more. They also need to spend more because no recovery can take place with consumers on the sidelines. That's the nub of one of the many challenges facing the battered, reeling economy.
In Tough Times, Savings Rate On The Rise
With worries about layoffs, declining home values and losses in retirement investments, Americans are again saving more of their income. The personal savings rate, as a share of disposable income, rose to 5 percent in January.
Personal savings rate as a share of disposable personal income, 1929-2009