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One route is through lower saving.
"Both effects promote lower saving," says Mr Dilnot of the IFS.
A lower saving rate is not necessarily, therefore, a bad thing.
Latin American countries, in contrast, tend to have much lower saving rates.
The unexpected strength of private consumption this year has largely come from lower saving, not higher income.
They tend to lend out smaller sums and offer lower saving rates than bigger financial services firms but instead pay dividends on the basis of the credit union's performance during the year.
Similar(48)
Residents had greater educational debt, greater noneducational debt, and lower savings.
But the flipside is lower savings rates as lenders attempt to balance their books.
Young, low-income people in the midwest see lower savings than under the House bill.
So not a recovery fuelled by debt, but a recovery fuelled by a lower savings ratio.
The gap between falling incomes and increased spending is bridged, partly by lower savings, but in great part by credit.
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CEO of Professional Science Editing for Scientists @ prosciediting.com