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Are We Saving Less But Getting Richer?

But UW-Madison Business School Dean Michael Knetter said talk of fiscal misery might be overwrought.

Our savings, he said, are tied up in homes and other assets that are increasing in value.

The Commerce Department focused on cash flow, Knetter said. “Using that method, you look at how much income is earned in a year and how much is not spent,” he said. “But it’s not the whole story.”