The low saving rate in the United States is no cause for concern, so long as people in other countries are saving and are willing to send their savings into the U.S. economy by buying our assets. Comment

What will be an ideal response?

Capital inflow does help to sustain investment in the U.S. above what it would be otherwise. But having savers in other countries finance our investment means that they own a portion of the resulting economic growth, leaving less for U.S. citizens to enjoy. Because capital inflow is an increase in the supply of savings, it can lower the return and thus incentive to save, discouraging U.S. citizens from ever consuming less and saving more. Capital inflow, also, may reflect a global imbalance in which the combination of high consumer demand and low return on saving fuels speculative activities (e.g., housing boom). As long as U.S. citizens consume so much and save so little, our trade deficit and corresponding indebtedness to other economies will persist.