Every holiday season, many Americans feel the compulsion to shop for themselves and their loved ones. George W. Bush famously encouraged the nation to go shopping during his presidency, reminding Americans that 70 percent of the economy is derived from personal spending. This year, the economic engine went into overdrive during Black Friday and Cyber Monday; but, does that indicate signs of a looming economic recovery?
Daniel Gross, economics editor and columnist at Yahoo Finance, talks more about the relationship between spending, saving and the U.S. economy. Sheldon Garon, professor of history at Princeton University and author of "Beyond our Means: Why America Spends While the World Saves," discusses the relationship between spending and savings.