WASHINGTON, Jan. 30 (Xinhuanet) -- The savings rate for the year of 2005 in the United States declined to the lowest level since the Great Depression, the Commerce Department reported on Monday.
The report showed that the U.S. savings rate for all the y ear of 2005 dropped into negative territory at minus 0.5 percent. That was the lowest annual savings rate since the rate declined to minus 1.5 percent in 1933, a year in which the country was struggling to cope with the Great Depression.
A negative savings rate means that Americans spent all their disposable income, the amount left over after paying taxes, and dipped into their past savings to finance their purchases.
The department also said that U.S. consumer spending rose by 0.9 percent in December, more than double the 0.4 percent rise in the personal incomes. Enditem
Americans are spending more than they are earning, pushing the national savings rate to lows not seen since the Great Depression.  The Commerce Department released a report saying that personal savings fell to a negative 0.5% in 2005.  

This means that people spent everything they earned and more.  This is the third time that the savings rate has been negative, the previous two times were both during the Great Depression in 1932 and 1933.  The savings rate has been declining since 1984 when it stood at 10.8%, in 2004 it was 1.8%.