But our saving rate is a mere 4.6 percent of net national income (national income net of deprecation). Net domestic investment (investment in the U.S., whether done by Americans or foreigners, net of depreciation) is 5.6 percent of net national income. The gap between these numbers, equaling 1 percent of net national income, reflects, almost entirely, the trade deficit -- the difference between imports and exports. Instead, the household sector has been consuming an ever larger share of net national income. In short, our low saving rate and associated trade deficit is of our own making.

Source: Forbes February 04, 2017 15:01 UTC