Government Figures Show No Spending or Income Collapse Since Crisis Began

Lehman Brothers (LEHMQ.PK) failed in September 2008, and that started the panic that got the world's attention.

So a year later, in September 2009, after living through a year of "disaster," how did real consumption expenditure (one economists' favorite measures of living standards) compare to what it was in September 2008?

What about real disposable personal incomes: the amount of income households have on hand to spend?

Both of these are HIGHER in September 2009 than they were a year earlier.

Of course, we cannot say the same thing about employment, but nobody seems to acknowledge that this recession is much more about the labor market than about drops in real incomes or spending.

[The BEA may revise the September 2009 income and spending numbers, up or down, so it is possible that the revisions show real income and or spending to be slightly lower 9-09 than 9-08. But the fact that the BEA's measurement techniques are not precise enough to detect any kind of decline is proof itself that no collapse occurred.]

Comments

[Dave Wrixon:]

Or it could be read as meaning the statistics are bunk!

Nov 08 09:42 AM

[Old Trader:]

And how much is due to various stimulus packages thrown at the economy? I call "bullshit" (not on the "numbers", per se, but on the author's interpertation of them).

Nov 08 12:08 PM

[The Geoffster:]

Government figures? Go figure.

Nov 08 04:59 PM

[tripleblack:]

Its time to ignore government statistics - from EVERY government, but particularly ours.

The idea that we have millions and millions of folks out of work, but their income levels have not gone down is ludicrous.

Why this does not trigger an instant investigation of the statistical regimen (and source) can only be explained by the fact that it IS, after all, a pack of foxes we have hired to guard the hen house.

LOL, but this does not mean we should believe the reports from the hen house that "all is fine, laying the same number and quality of golden eggs as last year".

On Nov 08 04:59 PM The Geoffster wrote:

> Government figures? Go figure.

Nov 08 05:12 PM

[Gary A:]

I agree with you. I am concerned that tax coffers are depleted, people are out of work in droves, savings rates are up, teens aren't spending, credit is drying up massively, by billions, yet we are to believe that spending is flat. This should be investigated because if spending is flat then I can guarantee you so is the world itself!


On Nov 08 05:12 PM tripleblack wrote:

> Its time to ignore government statistics - from EVERY government,
> but particularly ours.
>
> The idea that we have millions and millions of folks out of work,
> but their income levels have not gone down is ludicrous.
>
> Why this does not trigger an instant investigation of the statistical
> regimen (and source) can only be explained by the fact that it IS,
> after all, a pack of foxes we have hired to guard the hen house.
>
>
> LOL, but this does not mean we should believe the reports from the
> hen house that "all is fine, laying the same number and quality of
> golden eggs as last year".
>
> On Nov 08 04:59 PM The Geoffster wrote:

Nov 08 07:51 PM