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Japan's drop in savings has coincided with an erosion in pay and job security for many workers, especially younger ones.
Rising house prices have also led to a huge rise in debt, a drop in savings and a "crowding out" of investment in more productive enterprise.
Related: The Observer view on London's wealth gap According to the SMF report, the 26 to 35-year-old group has suffered a 36% drop in savings since 2005 – from a median £461 to £296 – while the top 20% of earners "are far more financially secure today than going into the downturn".
But while any incentive to encourage people to save more is welcome, as I have said before in this column the only people really affected by a drop in savings income are those who have substantial savings already - and are therefore unlikely to struggle to pay their bills.
A recent 9.5% drop in savings at smaller financial institutions (in anticipation of the end of deposit guarantees) is a sign this may already have begun.
A recent drop in savings of 9.5% at smaller financial institutions (in anticipation of the end of these deposit guarantees) is a sign that this may already have begun.
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This sharp rise in corporate saving was countered by a drop in the savings rate of Japanese households and, most importantly, by a huge and persistent increase in budget deficits.A similar dynamic will surely play out in America's over-indebted households.
But a slow drop in the savings rate has raised fears about the long-run sustainability of public finances, especially given the country's lackluster economic outlook, the Fitch report said.
This is why disposable personal income has not climbed as fast as total wages and salaries and explains a great deal of the drop in the savings rate.
That's mirrored in the drop in the savings rate, which hovered in the high single digits before the booms, then fell to near zero and dipped into negative territory shortly after.
With modest increases in disposable income, up 2.1% in 3Q following a 3.6% gain in 2Q, along with a drop in the savings rate, to 3.4% in 3Q from 2Q's 3.8%, the consumer is willing — and able — to increase spending this holiday.
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