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United States News Title: Where Did The Income Go? (PI "growth" flat...No recovery seen!) Where Did The Income Go? It appears that the Federal Tit Pump is running out of power... Personal income increased $1.2 billion, or less than 0.1 percent, and disposable personal income (DPI) increased $1.6 billion, or less than 0.1 percent, in February, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $34.7 billion, or 0.3 percent. Oh boy, now the $1.3 trillion in additional deficit spending is no longer contributing to personal income! That's not so positive - indeed, it's not positive at all. Private wage and salary disbursements increased $2.0 billion in February, compared with an increase of $16.6 billion in January. Goods-producing industries' payrolls decreased $3.5 billion, in contrast to an increase of $5.2 billion; manufacturing payrolls decreased $1.4 billion, in contrast to an increase of $5.0 billion. Services-producing industries' payrolls increased $5.5 billion, compared with an increase of $11.4 billion. Goods down.... uh, where's our so-called economic recovery? Proprietors' income decreased $6.1 billion in February, the same decrease as in January. Farm proprietors' income decreased $7.1 billion, the same decrease as in January. Nonfarm proprietors' income increased $1.0 billion, the same increase as in January. Very little change in proprietor's income ex farming, but farmer income is down significantly. Rental income of persons increased $2.2 billion in February, compared with an increase of $1.9 billion in January. Personal income receipts on assets (personal interest income plus personal dividend income) decreased $16.5 billion, the same decrease as in January. Rents up a bit, but dividends are down huge, continuing a trend. This is not positive at all, and implies that assets are being sold to continue lifestyle choices. This leads to a question that has begun to gnaw at me: Have we begun to cross into where boomers start pulling funds out of asset classes to live on? Personal current transfer receipts increased $16.6 billion in February, compared with an increase of $29.8 billion in January. The January change reflected the Making Work Pay Credit provision of the American Recovery and Reinvestment Act of 2009, which boosted January receipts by $19.8 billion. The Act provides for a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers. When an individual’s tax credit exceeds the taxes owed, the refundable tax credit payment is classified as “other” government social benefits to persons. Government to the rescue! $45 billion worth in the last two months, to be specific. That's a direct $270 billion in handouts, or 2% of GDP - and that's only the direct handouts! So subtract that off GDP and..... (oh, and don't forget the rest of the $1.3 trillion too.) Nothing to see here folks, as in "no evidence of sustainability in the recovery." We have a government that continues to "prime the pump" but there's no water at the bottom of the well to generate self-sustaining economic growth.
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#1. To: Nebuchadnezzar (#0)
Fun with numbers, eh? It was a solid if not spectacular report.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
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