Savings rate lowest since Great Depression
WASHINGTON (AP) -- Americans are spending everything they're making and more, pushing the national savings rate to the lowest point since the Great Depression.
The Commerce Department reported Monday that Americans' personal savings fell into negative territory last year. That means that people not only spent all of their after-tax income last year but had to dip into previous savings or increase their borrowing.
The savings rate has been negative for an entire year only twice -- in 1932 and 1933.
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