By some accounts, it sounds as if we’ll soon reach the point at which retail stores will have tumbleweeds rolling through them.  Several different statistics point to American consumers cutting back on their spending and saving money instead.

This is a smart approach for any given individual, of course - a “forget you” to the greater economy for the sake of thriving or at least surviving.  It’s just that greater economy consideration that becomes something of an issue.

Ah, well.  Here are the facts.  Jack Healy writes, “The government reported that Americans cut their spending for a sixth month in December and as they worried about losing their jobs and earning less in a deteriorating economy.  The personal saving rate in the last three months of 2008 rose to its highest point in six years.”

Also, “In the last three months of 2008, the economy contracted at its fastest pace in a quarter-century.  As Americans shut their wallets and spent less at shopping malls, companies cut jobs and reduced their investment in heavy equipment, software and buildings to trim their costs.”

It’ll be interesting to see how well the stimulus bills address either side of that equation.