Lower consumer spending is contributing to America’s sluggish economy. Rather than borrowing and spending, Americans are repaying old debt and saving more. Why? Matthew Shapiro says “people got a cruel lesson about [the dangers] of debt” during the housing bubble and recession, when mortgages and credit card debt soared. Shapiro says that if Americans are able to keep saving, household spending may continue to rise at a slow and steady pace.

More about Shapiro says Americans’ low spending reflects “cruel lesson” about the dangers of debt >