Could Millennials’ Spending Habits be Holding Back the Economy?
October 8, 2019
Millennials, long derided for being irresponsible with money, may be harming the economy by not spending enough. The idea comes from research conducted by Raymond James. Data shows that the average U.S. personal savings rate is 8.1 percent as of August. This is much higher when compared to the 5.7 savings rate in 1998. The thinking is that millennials who came of age during the Great Recession are more cautious with their money and save more.
While this may be good news for their personal bank accounts, it could be limiting economic growth, and contributes to deflationary pressure, excess supply and increased debt on the supply side.