Disposable Income is Falling at 2008 Rates

[Nova78]

Real Disposable Income is Falling at 2008 Rates | Zero Hedge

The biggest single most important item in the GDP report yesterday was the collapse in disposable income for Americans.



Most investors will focus on the drop in GDP growth for 1Q13 and view it as opening the door for the Fed to continue with QE 3 and QE 4 without any tapering in sight.

After all, the markets have believed that bad economic news is good news for the markets for four years based on the belief that a weak economy will mean more money printing from the Fed.

However, the real issue in the BEA’s report on GDP growth was the collapse in real per capita disposable income which fell at a annualized rate of 9.21%. That is a truly staggering collapse in incomes. The last time we say anything even close to this was in the third quarter of 2008.

That was right after Lehman failed and the entire economy and stock market were melting down. Buckle up, things are getting worse in the US at a truly alarming rate.

Cheers, vacation time .........

 

[oldfart]

Real Disposable Income is Falling at 2008 Rates | Zero Hedge

The biggest single most important item in the GDP report yesterday was the collapse in disposable income for Americans.



Most investors will focus on the drop in GDP growth for 1Q13 and view it as opening the door for the Fed to continue with QE 3 and QE 4 without any tapering in sight.

After all, the markets have believed that bad economic news is good news for the markets for four years based on the belief that a weak economy will mean more money printing from the Fed.

However, the real issue in the BEA’s report on GDP growth was the collapse in real per capita disposable income which fell at a annualized rate of 9.21%. That is a truly staggering collapse in incomes. The last time we say anything even close to this was in the third quarter of 2008.

That was right after Lehman failed and the entire economy and stock market were melting down. Buckle up, things are getting worse in the US at a truly alarming rate.

Cheers, vacation time .........

View attachment 27289 View attachment 27290View attachment 27291

All of this would be interesting if true.

Disposable personal income increased $104.1 billion (3.4 percent) in the second quarter, in contrast to a decrease of $231.5 billion (7.2 percent) in the first. Real disposable personal income increased 3.4 percent, in contrast to a decrease of 8.2 percent.

News Release: Gross Domestic Product

Is ZeroHedge just misreading the press release?

 

[SteadyMercury]

Is ZeroHedge just misreading the press release?

It is user submitted content, and it closes with:

If you have not taken steps to prepare for a market collapse, we have a FREE Special Report that outlines how to prepare your portfolio. To pick up a copy, swing by:


A quick google shows they spend a lot of time spamming end-of-days crap to drive users to their site. Unfortunately people like threadstarter then use it as political ammo.

 

[Nova78]

Is ZeroHedge just misreading the press release?

It is user submitted content, and it closes with:

If you have not taken steps to prepare for a market collapse, we have a FREE Special Report that outlines how to prepare your portfolio. To pick up a copy, swing by:


A quick google shows they spend a lot of time spamming end-of-days crap to drive users to their site. Unfortunately people like threadstarter then use it as political ammo.

Here ,then this may enlighten you ass-wipe ,I await your speedy reply ....

Report: Household income below end-of-recession

The average American household is earning less than when the Great Recession ended four years ago, according to a report released Wednesday.

U.S. median household income, once adjusted for inflation, has fallen 4.4 percent in that time, according to the report from Sentier Research. The report is based on an analysis of Census Bureau data.

The median, or midpoint, income in June 2013 was $52,098. That's down from $54,478 in June 2009, when the recession officially ended. And it's below the $55,480 that the median household took in when the recession began in December 2007.

 

[Rshermr]

Is ZeroHedge just misreading the press release?

It is user submitted content, and it closes with:

If you have not taken steps to prepare for a market collapse, we have a FREE Special Report that outlines how to prepare your portfolio. To pick up a copy, swing by:


A quick google shows they spend a lot of time spamming end-of-days crap to drive users to their site. Unfortunately people like threadstarter then use it as political ammo.

Here ,then this may enlighten you ass-wipe ,I await your speedy reply ....

Report: Household income below end-of-recession

The average American household is earning less than when the Great Recession ended four years ago, according to a report released Wednesday.

U.S. median household income, once adjusted for inflation, has fallen 4.4 percent in that time, according to the report from Sentier Research. The report is based on an analysis of Census Bureau data.

The median, or midpoint, income in June 2013 was $52,098. That's down from $54,478 in June 2009, when the recession officially ended. And it's below the $55,480 that the median household took in when the recession began in December 2007.

Got it. We see. You were posting untrue numbers in your original post, but now you have new ones that say what you want to say. You are not interested in now, but rather a few years back. OK. GOT IT.

These numbers, from that same source provided by oldfart in his post above:

"Real personal consumption expenditures increased 1.8 percent in the second quarter, compared
with an increase of 2.3 percent in the first. Durable goods increased 6.5 percent, compared with an
increase of 5.8 percent. Nondurable goods increased 2.0 percent, compared with an increase of 2.7
percent. Services increased 0.9 percent, compared with an increase of 1.5 percent."
News Release: Gross Domestic Product

In general, things seem to be turning around. Too slowly. So, any suggestions on how to speed things up?

 

[SteadyMercury]

Here ,then this may enlighten you ass-wipe ,I await your speedy reply ....

Okay let me see if I understand you here.

First you regurgitated some spam bilge which was quickly spotted as incorrect by another poster, and since being called on it you are now demanding a completely different bit of information gets a reply?

I've made no comment on median household income, it wouldn't surprise me if it was down. What reply are you looking for here?

 

[SteadyMercury]

Got it. We see. You were posting untrue numbers in your original post, but now you have new ones that say what you want to say.

Exactly.

He had zero interest in economics, which is the topic of this subforum. He was simply trying to fire a random political salvo by posting something he thought showed lack of progress along with pictures of Obama.

There is a political forum for partisan drivel, and a current events forum which is basically the same. Why try to stir up crap here?

 

[Rshermr]

Got it. We see. You were posting untrue numbers in your original post, but now you have new ones that say what you want to say.

Exactly.

He had zero interest in economics, which is the topic of this subforum. He was simply trying to fire a random political salvo by posting something he thought showed lack of progress along with pictures of Obama.

There is a political forum for partisan drivel, and a current events forum which is basically the same. Why try to stir up crap here?

There are several who do just that. This joker is one of those several. That is ALL that he does. There is no interest in discussion of any kind here. Just interest in posting political dogma. It is a sad state of the weak minded.

 

[oldfart]

Is ZeroHedge just misreading the press release?

Here ,then this may enlighten you ass-wipe ,I await your speedy reply ....

You started with a post from a source you thought was reliable. They were wrong. I asked if (not you) the source had misread the BEA press release. I don't hold people responsible for errors in a source they think should be reliable. Everybody makes mistakes, even hack bloggers like those on ZeroHedge. I never stated or implied that you were at fault.

So why do you choose to act like a clown?

 

[Rshermr]

Is ZeroHedge just misreading the press release?

Here ,then this may enlighten you ass-wipe ,I await your speedy reply ....

You started with a post from a source you thought was reliable. They were wrong. I asked if (not you) the source had misread the BEA press release. I don't hold people responsible for errors in a source they think should be reliable. Everybody makes mistakes, even hack bloggers like those on ZeroHedge. I never stated or implied that you were at fault.

So why do you choose to act like a clown?

And there is the proper question. You must have experience dealing with recalcitrant students!!!!

 

[OnePercenter]

Raise minimum wage to $23.50/hr.

 

[The Rabbi]

Raise minimum wage to $23.50/hr.

Heck why stop there? What's wrong with $50?

 

[Defiant1]

Raise minimum wage to $23.50/hr.

If you were a worker currently earning $23.50/hr would you be ok with not receiving a pay increase, but feeling good because the person who sweeps the floors and taking out the trash is now making the same as you?

 

[kiwiman127]

Who creates jobs and determines wages?

 

[Ava]

Obama's biggest failure: 8/22/2013. His plan to destroy America economically and militarily, is working.


[ame=http://www.youtube.com/watch?v=SM2Au501hoM]Obama's Biggest Failure - YouTube[/ame]

 

[oldfart]

Here ,then this may enlighten you ass-wipe ,I await your speedy reply ....

You started with a post from a source you thought was reliable. They were wrong. I asked if (not you) the source had misread the BEA press release. I don't hold people responsible for errors in a source they think should be reliable. Everybody makes mistakes, even hack bloggers like those on ZeroHedge. I never stated or implied that you were at fault.

So why do you choose to act like a clown?

And there is the proper question. You must have experience dealing with recalcitrant students!!!!

The poster child was when I was an undergraduate in a course titled "Money & Capital Markets". A graduate student wanted to argue the technical definitions of money supply (specifically what was included in M2). The professor tried to walk him through it as gently as possible but he was being a jerk (he knew what he knew). The problem is that that particular professor was in his first year teaching. His previous job? the Federal Reserve Bank of Chicago. What did he do there? He was in charge of the Fed's money supply statistics and the Chicago Fed's studies on money supply.

 

[oldfart]

Raise minimum wage to $23.50/hr.

If you were a worker currently earning $23.50/hr would you be ok with not receiving a pay increase, but feeling good because the person who sweeps the floors and taking out the trash is now making the same as you?

There is a pretty good literature on wage levels and wage structure. A lot of hourly jobs are pegged to a premium over the minimum wage, so that when the minimum wage goes up, so do these wage rates. For example, entry level tax preparers are starting at $10.00 per hour and have maintained about a $2.00-$2.50 margin over minimum wage for decades.

As wage rates get higher, there is less and less connection to the minimum wage. Today an increase in minimum wage would probably affect about 30% of the labor force directly or indirectly.

Personally I don't care what other people make. As an employer, there are years when I made a lot less than my average employee. That's just part of being a small business owner.

 

[SteadyMercury]

My field sometimes has that situation where the employee makes more than their supervisor.

Many software devs who have been in the business long enough make pretty good buck well into six figures, yet they can end up working for a middle manager type who makes in the 70s or 80s.

 

[OnePercenter]

Raise minimum wage to $23.50/hr.

Heck why stop there? What's wrong with $50?

If wages would have kept up with costs minimum wage would be $23.50/hr.

 

[OnePercenter]

Raise minimum wage to $23.50/hr.

If you were a worker currently earning $23.50/hr would you be ok with not receiving a pay increase, but feeling good because the person who sweeps the floors and taking out the trash is now making the same as you?

They would receive a pay increase. Minimum wage is the base for ALL wages.