The authors document the trends in U.S. saving during the 1980s, giving particular attention to those measures of saving that gauge the growth of productive assets. They go on to assess the effects of these developments on capital formation and the nation's long-term economic potential.

Many analysts predict a resurgence in national savings as baby boomers approach retirement. This analysis of demographic trends and survey measures of savings and income suggests that such expectations may be ill founded. Although baby boomer saving rates will likely rise over the next twenty...