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Originally Posted by chemgear
Given the non-stop rise in household debt I would suggest no, at least overall across the board. For the "wealthier" people . . . perhaps - not sure there are stats that would define/track that.
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http://research.stlouisfed.org/fred2/series/PSAVERT
Not specific enough but US savings rate hit an all-time low a couple of years back then began to recover for a year or two and has just recently started to decline again.
Canadian savings rates aren't any better. In 1990 Canada had a 13% savings rate but bottomed out in 2005 -0.04% and hasn't really substantially broken trend since. A study "Perspectives on Labour & Income" found that the main culprits hindering savings rates are #1 Shelter #2 Transportation #3 Food #4 Recreation #5 Clothing #6 Health #7 Tobacco & Alcohol. How do you keep up? Canadian home equity hit a 20-year low in 2010 at 34.3% so clearly home equity is being used to "keep up". I would agree that household debt in Canada hitting an all-time high at $1.5 Trillion would suggest no. The Wealthy Barber came out in 1989 just before Canadas savings rate peaked at 13% the next year and preaching the pay yourself first 10% principle. The Wealthy Barber returns came out last year and clearly many people aren't buying it.