Earlier today, I mentioned the fact that the Commerce Department revised the personal savings rate for 2016 and 2017 up substantially. The magnitude of the revision is eye-catching. And my inner sceptic wonders how the initial data reads could have got it so wrong. On Monday, I plan to call and ask how these revisions were calculated. But for the time being let me tell you what I know.
The personal savings numbers
Now let's look at what the New York Times reported this morning:
The bureau made use of a new Internal Revenue Service analysis and concluded that the government had been overestimating the amount of national income held by corporations and underestimating how much of it was held by proprietors of businesses. That meant people — as opposed to corporations — had been sitting on m...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.