Here’s a graph the Keynesians, statists, and Wall Street gamblers—yes, we repeat ourselves—would prefer not to explain. At the same time, it also explains why socialism at this late date in history—and after all its abysmal failures the world over—is having some kind of dubious second coming in America.
During the last three decades the national savings rate (red line) has essentially collapsed, having fallen from 6.3% of GDP in 1997 to 0.5% of GDP in 2025. Between the same two dates, however, the net worth of US households (blue line) has soared from 4.6X personal income to 6.5X personal income.
In economist jargon, the question would recur as follows...
Read the full article here