The government extracts money from the pockets of producers and hands it out to the 100 million non-working consumers and then publishes propaganda data reports announcing strong growth in personal income. The MSM unquestioningly regurgitates the lies and the Wall Street shysters cheer.
The last chart is a doozy. Real disposable income per person has barely budged in the last 8 years. And that is using the manipulated, massaged, seasonally adjusted, excel spreadsheet tweaked BLS bullshit CPI figure that is understated by at least 3% to 5%. In reality, the average person has far less real disposable income than they had in 2007. The non-average people in the top .1% are doing just fine.
Do you think this lack of real disposable income might have something to do with the crash in retail store sales and profits and the ongoing recession for most Americans? It might have something to do with the rise of Trump.
Submitted by Tyler Durden on 08/28/2015 08:39 -0400
While the headline spending and income data consists of marginal moves, personal spending missed expectations by the largest amount since the dismal weather-strewn days of January. Consumption rose 0.3% in July, less than the 0.4% expectation and flat from the 0.3% June print. Income rose 0.4% – in line with expectations – ticking up YoY to 4.3% 0 juiced by a $13 billion government transfer receipts print – the most since March. The savings rate ticked up once again as those darned consumers refuse to spend as the elite demand.
Spending missed hopeful expectations by the most since January…
With YoY changes echoing the pre-collapse pathway…
And aggregated:
As the savings rate ticked up once again from 4.7% to 4.9%, matching the March 2009 level, and hardly indicative of a consumer who is willing to “charge” everything.
Finally, disposable personal income per capita: at just why of $38,000 it is up a whopping $2000 from the December 2007 level.
The Great Depression started in the countryside when the new machines made farming so efficient that there were to many farmers and prices fell so bad they had less and less spending money. Then rural merchants started going broke, then rural banks, then city merchants and banks, then everybody.. This time the Banksters and Elite are printing trillions but are first at the Fed money spigots hogging it and buying Wall Street junk, foreign businesses, mansions, yachts, art, politicians, etc, while workers and merchants get hind tit. The result will be similar.