Household Spending - or Lack Thereof

Middle Class Slams Brakes on Spending (WSJ) Households in the middle fifth of the population sliced their average annual spending to $41,150 in 2009.
That was down 3.1% from 2007 and 3.5% from 2008. The drop came even as those households' after-tax income remained relatively stable over the two years, at an average $45,199. On average, from 2007 to 2009, they cut spending 20.1% on alcoholic beverages, 15.2% on clothing, and 9.5% on restaurants and other food away from home. They also spent less on some groceries as well as seafood. Spending rose 5.6% from 2007 to 2009 for the poorest fifth of consumers, despite a 5.5% drop in after-tax income to an average $9,956 a household. The lowest earners spent 15.4% more on food last year than in 2007. Among the poor, rent expenditures increased 5.3%. Spending by the richest fifth of consumers fell 2.6% from 2007 to 2009.

Ready for some quick math?

AT Income:    $45,199
Spending:       $41,150
remaining:      $ 4,044


Personally, I think the numbers are wrong.  The 10% implied savings rate is well above the savings rate in the US paygo economy.

Quite the safety net, no?  This would show that the "average" American is one transmission job and a set of braces away from losing the house.   Whats that dear, you want to go to college?