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Falling national savings rate has driven underinvestment in physical structures, Eric Basmajian notes

Falling national savings rate has driven underinvestment in physical structures, Eric Basmajian notes
Savings rate collapse tied to infrastructure

Eric Basmajian points to a decades-long trend of underinvestment in physical structures and infrastructure in the U.S. He attributes this to a steep drop in the net national savings rate, which has fallen from 10% to 0.5%.

In earlier research, Basmajian noted that the U.S. economy was stronger than current conditions in 80 percent of historical periods. He also reported that residential building payrolls are down 2.5% from their peak, a smaller decline than seen before past recessions. These observations add context to concerns about underinvestment in physical structures.

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