Substantial Savings

From 1980-2007, US savings rates declined from about 10% to 2.5%. They have since risen and are now 8.1%. Unsurprisingly, savings rose after the recession as households rebuilt wealth. Rates may also be up due to rising economic uncertainty. But savings rates jumped dramatically after the Trump tax cuts, strongly suggesting higher savings rates are being primarily driven by rising wealth/income inequality as the poor don’t save from tax cuts.