The report looks at half of the equation. It looks at the expenditure side of the whole thing, only seeing what people are doing with their money in a numerical sense and not looking at why they're spending, or what they're spending on.
How is my savings account? Terrible! I've been very dumb with my money since graduating from college, but am on the gradual path to fix that. In a year I should be debt-free and be steadily building up my savings. I also have a very nice pile of money already put aside in a 401(k). The consequence of digging out of debt and saving? I can't get that new computer I want just yet. I can't get the new iPod, and my car could probably do to have some serious tune-up work done on it.
The apartment complex I live in is definitely "low income" but do you know how many BMWs I see in the parking lot? My neighbor next door has 3 kids and herself in a 1 bedroom apartment but has a huge high-def television and a nice new car. Similar situation for the folks across the hall from me.
Me? 27" tube TV, a cheap car, hand-me-down furniture and not a whole lot else. I'm not poor by any stretch, but I'm not rich either... but that's largely because I'm making up for past financial mistakes.
Dipping into savings and having a negative savings rate is only a valid issue if it's because it's required to purchase necessities. If someone is breaking the bank for a new sports car or fancy doodad, then it isn't the fault of the economy. Increased credit limits and a lack of personal financial responsibility has been a huge problem for the past several years. Kids are used to their parents bailing them out. Families are going into debt for annual vacations. Show me a strong statistic that says people are forced to live a lower standard of life and are unable to pay for necessities, and then maybe you have a point.
But just saying "people are saving less" is only looking at a small part of the overall picture.
And it's not the government's job to save people from their own stupidity.
