FGV Savings Rate Total Income Economic Stability Debt Status Discussion Topic: “Seemingly small monthly charges are adding up as people “subscribe” instea

FGV Savings Rate Total Income Economic Stability Debt Status Discussion Topic:

“Seemingly small monthly charges are adding up as people “subscribe” instead of owning an asset outright. Analysts and financial planners say the popular revenue model could result in more personal debt and weigh on people’s ability to save.

“What that leaves us with is a lot of income that is spoken for in a person’s paycheck,” says Plaid CEO Zach Perret. “The percentage of free cash flow, or unencumbered income, is a lot lower now than we might have seen in the past.”

A $4 or $8 subscription for streaming or makeup might not sound high — but it adds up and might result in “accumulating consumer debt,” according to one financial advisor.”

Review the above statement and answer the following questions:

Based on the above statement, do you believe that Saving Rate is decreasing or increasing in US?
What is consumer debt? Why is it accumulating? Give examples.
As an economist, suggest ways to improve saving rate in US economy.