The savings rate in China is 40%. Economists have observed a negative correlation between the personal savings rate and the availability of a social safety net. In societies where the state does not provide a substantial safety net, people adapt by saving high percentage of their income, and this is why the savings rate in China is so high.
Incomes are higher today than during the periods in American history when economic growth rates were highest, so the fact that more people are living paycheck to paycheck is more likely explained by the establishment of a comprehensive social safety net reducing the incentive to build up personal savings.
Social welfare spending has massively increased over the course of the last several decades.
Incomes are higher today than during the periods in American history when economic growth rates were highest, so the fact that more people are living paycheck to paycheck is more likely explained by the establishment of a comprehensive social safety net reducing the incentive to build up personal savings.
Social welfare spending has massively increased over the course of the last several decades.