The Saving Glut of the Rich

69 Pages Posted: 6 Apr 2020 Last revised: 11 Feb 2022

See all articles by Atif R. Mian

Atif R. Mian

Princeton University - Department of Economics; Princeton University - Princeton School of Public and International Affairs; NBER

Ludwig Straub

Harvard University

Amir Sufi

University of Chicago - Booth School of Business; NBER

Date Written: April 2020

Abstract

There has been a large rise in savings by Americans in the top 1% of the income or wealth distribution over the past 40 years, which we call the saving glut of the rich. Instead of financing investment, this saving glut has been associated with dissaving by the non-rich and dissaving by the government. An unveiling of the financial sector reveals that rich households have accumulated substantial financial assets that are direct claims on U.S. government and household debt. State-level analysis shows that the rise in top income shares has been important in generating the rise in savings by the rich.

Suggested Citation

Mian, Atif R. and Straub, Ludwig and Sufi, Amir, The Saving Glut of the Rich (April 2020). NBER Working Paper No. w26941, Available at SSRN: https://ssrn.com/abstract=3569406

Atif R. Mian (Contact Author)

Princeton University - Department of Economics ( email )

Princeton, NJ 08544-1021
United States

Princeton University - Princeton School of Public and International Affairs ( email )

Princeton University
Princeton, NJ 08544-1021
United States

NBER

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Ludwig Straub

Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

Amir Sufi

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

NBER

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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