There are always people to blame in the United States as the blame culture is exploding. Now the new blame game is that Millennials are responsible for the sluggish US economy. Of course the savings rate is rising and with tough times for Millennials, there are those who are more careful with their money. “Savings rates are now higher leading to excess supply seemingly everywhere in the economy,” analyst Travis McCourt wrote in a note to clients on Thursday. We are sourcing this piece from a CNBC article attributed to Pippa Stevens.
So it seems that the Millennials are now being blamed for the slower economic activity as they tend to save and invest more – and charts clearly indicate that this trend will continue. We must keep in mind that this generation is scared by the Great Recession and are in a different frame of mind. The research piece by said analyst of Ramond James (a financial firm), pointed out that the US personal savings rate as a percentage of GDP was around 18% as of 2016, while this data, originally compiled by the IMF, showed, by comparison, Great Britain was around 13%, and Japan and China were 27% and 46%, respectively. Now surely the Millennials are saving more, but in our view, the spending patterns of Americans are such that at least for now, the Millennials are far less important. Who knows, they may be bigger spenders in the coming decade.