Between 1974 and 1987 the United states saved less of its income than any other advanced industrial nation! .
While Japan was saving over 30% of its income and Canada, France, Germany, and the United Kingdom were saving over 20% of their income the United Stated was saving only 15 % of our income. In fact in the early 1990s the United States actually fell to less than 14%. However in 1995 personal savings began to increase. The reason for this was probably one of two reasons: 1) a trend to increase savings as baby boomers were starting to stash away some of there money for retirement and 2) a boom in the economy had started in 1995 whereby giving us more income to divert to some type savings or investment plan.
4. Will the economy be able to grow with out high inflation and high unemployment .
rates?.
As for most of the 1980's the United States economy expanded fairly steady and unemployment rates fell from a high of 9.5% in 1982 to a low of 5.2% in 1989. Then in 1990 the U.S. economy stalled, unemployment rose and job growth came to a screeching halt. However, from 1992 to 1995 the U. S. economy grew steadily, creating millions of new jobs while inflation remained moderately low at 3% a year.
5. How successfully will U. S. industries face the challenge of competing in the global economy?.
The ability of our nation to provide jobs and growing income is linked more than ever to our competitive position in the rest of the world. The 1980's saw the emerging of the Pacific Rim Nations; Japan, South Korea, Singapore, Indonesia, Malaysia, Philippines, Taiwan, and Thailand all as potent present productive forces. Mexico, India, Brazil, Argentina, and several other developing nations will emerge in the future as major producers of goods and services. Additionally the ever-changing climate in Europe with the former Soviet Union and the Eastern European nations and China can all greatly affect the United States.
