No recovery: U.S. personal income fell 3.5%

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Obama media
Early this morning, I heard/saw it again — some chattering reporter on an alphabet TV network saying the words “the improved economy.”
For crying out loud.
Stop lying!
The economy is NOT improving!
FOTM has posted about America’s retail apocalypse — of major national retailers like J.C. Penney, Sears, and Best Buy cutting staff and closing stores, and Wal-Mart having the worst February sales in 7 years. Even Wall Street giant Morgan Stanley is cutting 1,600 employees, as revenue from trading and deal-making remains in the doldrums.
Now comes more dismal economic news from the U.S. Department of Commerce’s Bureau of Economic Analysis. In January 2013:

  • U.S. personal income decreased 3.5% ($505.5 billion), the biggest drop in personal income in 20 years.
  • That, in turn, led to a 4% decrease ($491.4 billion) in disposable personal income.
  • The decline in disposable personal income meant Americans had less money to buy goods, which accounts for why consumption increased by only 0.2% from December 2012.
  • The decline in disposable personal income also led to a decrease of personal saving rate to 2.4% — the lowest since November 2007.

personal savings rate feb_0Click image to enlarge

In the words of Bloomberg economist Rich Yamarone: “Consumers can’t spend what they don’t have, and they don’t have much.”
Nor is America’s anemic economic performance confined to just the month of January 2013.
As measured by personal income, 2012 was worse than 2011. Whereas personal income increased 5.1% in 2011, personal income increased only 3.5% in 2012. The year 2013 promises to be even worse, with personal income decreasing by 3.5% in the first month of the year.
H/t ZeroHedge

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0 responses to “No recovery: U.S. personal income fell 3.5%

  1. The printing of money, the quantative easing, by the FED has allowed the banks to continue their betting, double or nothing, betting, on the investments ? so called, in worthless bundles of mortages etc etc that have done nothing but deterioriate in value, and the bets are to trying and cover the everyincreasing losses. Meanwhile, lending has sunk, and many of the lines of credit or lending has been to bankis who need even more money than the stuff they get for low interest from the FED. Back at the ranch, no major infrastructure projects have been envisaged, let alone gotten started, so that the human economy, that is the productive power of labor, has atrophied. The Green Agenda is not a money maker nor a mass employer of laborers, and the government posts being offered are to push paper around and even these posts are now being subjected to the terms of the sequester, which was put forrth as a way of pushing the can down the road by the WH and has not been set aside by Congress since then. The Congress still has not come up with a Budget and the extension on that runs out at the end of March 2013.
    The USA is supposed to be the leader of the Western World, and it hasn’t got an operating budget?
    No wonder the citizens’ incomes are shaky.
    We are working for a government that cannot control the Administration even to keep the terms of the US Constitution. The FED is honor bound to provide enough liquidity and employment to keep the whole shebang going, and it has failed to do so. The voters in this country continually vote for people who support the oligarchs and their monetary system, which is in shambles. Entire nations are catastrophically poor, their homes in doubt and unemployment figures rocketing. This is a global problem, and requires a global solution. John Kerry has managed to squeeze millions out of the kitty just now for the Syrian opposition forces who are causing bloodshed and mayhem in Syria, unrest that could spill out all over Iraq, Iran and Israel if it is not quenched.
    And we are thinking about Sears closing down.
    About consumer spending.
    It’s time to get down to brass tacks. We need to stop the corruption in the Congress and in the Administration, time to reinstate Glass Steagall and shut down the bailouts. Separate commercial and investment banking, have Congress to rightfully start uttering credit through a new National Bank to finance projects big enough to put our workforce back to work, and to refloat the states so that they can support a healthy workforce, a well educated workforce, and above all a workforce that has a future to look forward to. We need to get NASA back up and running, we need to know more about these meteorites that are likely to crash into our planet and learn how to deal with them in time, and to prevent any rogue Thermonuclear war attempts that could break out due to the desperation of those who see that their stock trading and derivative trading activities are DOA.
    Enough of this soapbox. Certainly this is food for thought but maybe chocolate cake and icecream is more to most people’s liking than these ideas.

  2. Thank you Dr. Eowyn for this revealing post. As you stated, stop the lies!!!! Don’t mention the facts to anyone; let’s just let everybody live by what we tell them, is the philosophy and communication methods of the biased media governed by the liberal left. Lies are “in your face evil” and that is what is happening here. Thank you Dr. Eowyn for telling the truth supported by facts. So much for the idiotic decisions of people who voted for this sickening king.

  3. “improved economy” certainly is a relative term. That 3.5% drop is just for one month, however. I’m not saying it’s a good thing, but still, let’s get some perspective.
    After the economy went into the tank toward the end of Bush’s second term, per capita personal income (inflation-adjusted for 2011 dollars) decreased by 5.33% in 2009. But then it increased by 1.01% in 2010 and 1.82% in 2011. I couldn’t find the per capita personal income for 2012, but the average per capita personal income for the first three years of data I have for the Obama Presidency (2009 – 2011) is $41,031 (remember, that includes the 2009 calamity). Under Bush (2001 – 2008, again, inflation-adjusted to 2011 dollars) the average was $40,446.
    So yeah, that 3.5% one-month drop is disconcerting. But last I checked, $41K is BIGGER than $40K. I also trust my own eyes. As someone who works with many small businesses, I can tell you that my clients, at least, are most definitely in a stronger position today than they were at the end of 2009.
    But I’m just a “stupid liberal” so what do I know…

  4. Forward!

  5. Reblogged this on Gds44's Blog.

  6. Reblogged this on cedarridge2007.

  7. Not only are we not having a recovery, but it’s about to get a lot worse..
    Wall Street Legend Warns: A ‘Storm’ Is Coming


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