USA Today tells us that workers have not cut back their contributions to 401(k)s with the downturn. But the data it presents show they have. According to the article, average contributions have increased by 1.5 percent between 2007 and 2008. Inflation over this period has been close to 4.0 percent, which means that real contributions have fallen by close to 2.5 percent.
--Dean Baker
If you enjoyed this article, please consider making a tax-deductible donation today. For over 30 years, The American Prospect has delivered independent reporting that exposes corporate power, investigates political corruption, and analyzes threats to our democracy. Unlike many media outlets, we’re not owned by billionaires or corporations—we’re powered by readers like you.
Today’s independent journalism faces unprecedented challenges. Your support makes our reporting possible and keeps our work free and accessible to all. Whether it’s $5 or $50, every contribution helps sustain our nonprofit newsroom.
Join our community of supporters and make a donation today to help keep independent journalism thriving.
