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posted by martyb on Friday August 02 2019, @08:23AM   Printer-friendly
from the deregulation-and-tariff dept.

New data show much faster growth in wages and incomes.

Wages and salary figures have been going up faster than previously estimated, with the year-over-year increase revised from 3.6% to 5.5%. Even after adjusting for inflation, that is 4.1%.

Overall personal income is up, transfer receipts (welfare) are down, and savings is up. Americans are relying less on the government and saving more of what they earn. Personal savings is 8.1%, not the 6.1% that had been estimated. Consumer spending is up despite the increase in savings. The fact that spending isn't accompanied by a household debt increase makes the economic expansion more durable.

The numbers for the first quarter of 2019 look particularly good for reducing income inequality. Corporate profits declined while wages grew at an annualized rate of 10.1%.


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  • (Score: 5, Informative) by GreatAuntAnesthesia on Friday August 02 2019, @09:38AM

    by GreatAuntAnesthesia (3275) on Friday August 02 2019, @09:38AM (#874540) Journal

    Can't find the link now, but recently I read that the Rayndian MO of "Slash taxes for the rich in order to stimulate the economy" typically DOES result in an uptick in jobs, wages, spending etc.
    However that uptick is invariably shortlived, and followed by massive debts and a huge crash. IIRC California demonstrated this (I think it was under Reagan, who rode the uptick into the WhiteHouse before the other shoe dropped) as well as various other states / countries that have experimented with this particular 'fiscal strategy'.

    Best link I can find right now is this one: https://www.theguardian.com/commentisfree/2019/jul/16/boris-johnson-tax-cuts-tory-leadership-laffer-curve [theguardian.com] but it's not the article I'm looking for. I'll keep digging.

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