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No Growth In Personal Income Pushes Savings Rate To Lowest In 2015; Spending Misses Expectations
The myth of the resurgent US consumer, who was somehow supposed to benefit massively from the "unambiguously good" plunge in oil and gas prices, has been gutted and eviscerated, with the latest confirmation coming from the Personal Income and Spending data, in which we find that not only did personal income not grow in March, with wage growth the lowest in 2015 (with manufacturing workers' incomes coming flat and Trade and Transportation wages actually down), but because spending rose by a weaker than expected 0.4% in March, the 4th miss in the past 5 months, US personal savings have resumed declining and all those "gas savings" are finally being spent: just not where they should be spent, and not in the amounts hoped.
Personal income has now missed 5 of the past 7 months.
Personal income and spending:
Personal savings dropped from 5.7% to 5.3% - the lowest of 2015:
Wages and Salaries: hardly the stuff recoveries are made of:
And finally, yes, spending finally rebounded. The problem is that it wasn't enough and Q1 GDP will likely be cut once more.
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but taxes paid to fed govt continue at record highs!
that's where the moneys going.
See chart 2.
It's why the world is pissed off! That is the FIRE + Freeshit + Printing vertical climb while the rest of the world went south.
Give back to the rest of the world :-)
Fuck your guns and your ammo and your garage full of shaving blades and tampons to trade.
Give, collectively, somehow.
All imbalances have to be rebalanced. So easy? Karma etc., you know?
Being JUST angry is not good enough. What are you gonna do about it?
https://www.youtube.com/watch?v=ewdDVOc3tcA
I will agree that it is important to help others, however, I do not support redistribution of wealth. Nor will I willingly surrender my guns. It is not a perfect world ORI, and with the large amount of moral less, selfishly consumed people that are out in society today that could care less about other lives, it is important to defend ones self from them along with a tyranical government.
Feel free to junk away.
Freedom isn't free.
When a pimple faced snotnose in an air conditioned office in Las Vegas launches a missile from a drone to kill an 18 year old mother and her infant child, that's not cheap. When you figure in the costs, it's probably about a million bucks to blow that infant and her mother into so many pieces that they look like a red mist.
It's well worth the destruction of any economic hope for working class americans in order for them to sleep well at night knowing that the little foreign infant won't be able to rampage across america.
McDonnell Douglas and the rest of the MIC stockholders will sleep well too. They always do.
Ever dance with the devil during the pale moon light?
Nuthin that doubing the immigration rate won't fix!
Lowering wages while increasing prices. How does that work out?
sorry, forgot the sarc tag
For the middle class, it doesn't work out so well. For the welfare class and the elites, it's great.
Gotta love that "Middle Class Economics" - Not.
Keep the Wall Street party going with denials and lies until it can't.
Debt saturation is a bitch.
Don't use gas so I saved even moar!
Isn't paying down debt considered "savings"? I think I recall that from a past article.
All my personal spending is going to medical: cost of the insurance itself, co-pays, & deductible. Nothing left for an iWidget or dinner out. Savings from lower gas prices does not even cover one co-pay. I'm tapped out!
All predicted when 0zer0care was passed. Don't forget the billions in bailouts the insurance companies got from the Fed Govt because the number of "uninsured" that were supposed to sign up... didn't. So the taxpayer gets to eat this cost also. So to recap... higher insurance cost, higher copay, higher out of pocket, less choice of insurance, less choice of doctor, no real improvement of the uninsured, and insurance industry bailout by taxpayers. WINNING!
would like to see this chart without the 1% wealth and less the trillions of debt being piled on.
None of this is important. Need to focus on Freddie the cocaine dealer and the illusion of rate increase lies!
How much longer before we catch down with Vietnam so we can be the slave labor force for the rest of the world? Hey, maybe if we really get it right we can catch down to Kenya. We ave the right "leader"for it.
Capital controls are coming. Borders will be gaurded all around for leaving US but immigrants will be allowed in. Get your money out now. Blankfein is coming for it.
Ha! Ha! I spend my savings on hookers and blow....
A lot of ppl on my twitter feed praising the fact wages are up today.
Yes, wages are up, 2.8% YOY. BUT what is also up, are the cost of benefits like HC, transport, and other forms of insurance....around 2.7%.
That means after the vig is taken, wages are only up around 0.1% - right around where the GDP number came in.
It's getting worse, folks. And it's not falling like a meteor; more like an eroding sand dune.
When you use a word like vig, you know the numbers are fugazi, right?
Government is a criminal enterprise.
You could blame the Partnership for a New American Economy.
You could blame the firing of talented American workers.
You could blame trafficking of H1B visas by contractors like Cognizant.
You could blame the politicians who receive kickbacks from these contractors.
Or you could blame yourself for being quiet.