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At the end of September, both Democrat and Republican politicans tried to scare us into believing that payroll spending would collapse.

The chart below (including the BEA's release this morning) shows that payroll spending has barely hiccuped, let alone collapsed, in the four months since those alarms were issued.

Although something is clearly awry in this economy, it is hard to show that a credit crunch is that important, given that trillions of dollars continue to flow from businesses to households in the form of wages and other personal income items.

(Click to enlarge)

Source: Payroll Spending Collapse? Barely a Hiccup