I am totally opposed to government spending at this moment no matter what name they give it. The truth is the Government doesn’t have any money to give away. Everything we had they spent and then they spent $30 Trillion more in the hole. No one is discussing sustainability or the collapse in living standards for anyone not being paid by the Fed.
They talk a big game how these stimulus bills are “showering money on Americans” but the wealth gap has reached extremes since they started this money printing scheme and as we’ve previously showed regarding the net worth lie,
it is the wealthy who are receiving direct government support while the consumers are facing the direct result, higher prices.
Let’s look at what is going on for the common man and personal income.
- Americans’ income fell 7.1% MoM in February (-7.2% exp) vs the 10.1% (revised up) rise in January.
- Americans’ spending fell 1.2% MoM in February (-1.0% exp) vs the 3.0% (big upward revision) jump in January.
That is the largest MoM decline in Americans’ income on record.
On a year-over-year basis, spending remains lower and while income growth tumbled, it is still up 4.3% YoY…
Wages fizzled (so it;s a good job we got all that free money from Washington eh?)…
- private sector wages +0.5%, down from 1.6%
- government wages -2.7%, down from -2.3%
All of which means the savings rate tumbled from 19.8% in Jan to 13.% in Feb…
… as the Dec stimulus was spent but ahead of the March Biden stimulus.
What would the US ‘economy’ be without trillions of handouts from our overlords?
21% of all income was in handouts from the government, down from 26.9% in January…
Just wait for this to explode to record highs after the latest stimulus bill handouts hit the data.
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The craziest part is the fact over 20% of income is now coming from the government. There is no world in which this is sustainable and it’s taken us so far away from free market that the US should not be considered a capitalist nation, the issue is with these social economic systems is when the government runs out of everyone’s money in about 10 years and we’re eating our pets (or neighbors)
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