From the 1970s through the mid 1990s, federal deficits absorbed a large share of private saving and reduced the amount of national saving available for investment (see figure 4.1).
These declines in savings were later corrected. 
mnli hypothesis: These declines in savings were later corrected.  premise: From the 1970s through the mid 1990s, federal deficits absorbed a large share of private saving and reduced the amount of national saving available for investment (see figure 4.1).