The Commerce Department released March consumer income and spending data this morning. The MSM soft peddled the weak data and the stock market is soaring again. The government drones even reported that inflation was NEGATIVE in March. Other than gasoline coming down from an all-time high in February, have you been seeing costs for anything drop? As usual, I prefer to go directly to the data and make my own observations. Here is the link to the data:
Here are my observations:
- Personal income rose by a pitiful .2% in the last month and by a pitiful 2.5% in the last year. Since real inflation is running over 5%, this means that real personal income has fallen by 2% or more.
- Not only has real personal income fallen, there are 1% more (2.4 million) working age Americans in the country than last March.
- Of course, personal income is now made up of only 52% wages. Government transfers from workers to non-workers accounts for 18% of personal income.
- You’ll be happy to know that government transfers, excluding unemployment, have shot up by 5% in the last year, doubling the rate of wage growth. That SSDI program is doing wonders for personal income.
- You’ll also be happy to know that senior citizens and savers are earning less than ever in interest income as Bernanke’s ZIRP has transferred $400 billion per year from savers to the Wall Street banker bonus pool.
- You’ll really be happy to know that the amount of taxes stolen from your pocket by governmental entities across the land went up by 6.2% over last March.
- You slap all this crap together and you have disposable income up a tiny 2%. On an inflation adjusted basis, disposable income is falling.
- The savings rate of 2.7% is near all-time lows as the average schmuck doesn’t have a pot to piss in.
Just because entitlement transfers are rising at twice the rate of wages and taxes are rising at three times the rate of disposable income doesn’t mean things aren’t great. Have you seen the stock market lately? And Wall Street bonuses are going to be great this year. How you are doing is all a matter of perspective.