Known worldwide as big-spenders, Americans deserve praise for their savvy adaptation to changing circumstances in the midst of the worst economic downturn since the Great Depression.

To our delight, the U.S. savings rate is surging, reducing the nation’s dependence on China. In fact, Americans are zipping up their wallets and building their rainy-day funds at the fastest pace in 15 years. Recent government date shows that the household savings rate rose to 6.9 percent in May, the highest since December 1993.

This radically prudent behavior amounts to a U-turn from the previous borrowing binge that sent consumer debt to the highest level ever.

“There’s been a fundamental change in people’s behavior,” Lyle Gramley, senior economic adviser with New York-based Soleil Securities Corp. and a former Federal Reserve governor, told Bloomberg.com on June 28. “It will affect the economy for years.”
Indeed, banks are benefiting, as deposits grew 1.7 percent in May for the ninth-biggest jump since 1973.

While the drop in consumption could push the economy into a deeper contraction, if the newfound savings habit continues, over the long run, the U.S. undeniably will experience a growth in real wealth, which will spur domestic economic growth and make America more self-sustaining for the future.