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PERSONAL INCOME ROSE?

I love to actually read the press releases by our government and assess the facts for myself. I’m sure CNBC is thrilled with this morning’s numbers. Let’s examine the facts, shall we?

  • Personal income rose by $36 billion, while personal consumption expenditures rose by $56 billion. For those who are math challenged (like CNBC anchors and US Congressmen), that means consumers spent $20 billion more than they brought in.
  • Personal income up by $36 billion sounds pretty good until you actually look at where it came from. A whole $12 billion came from wages. The other $24 billion came from unemployment payments and other government handouts.
  • So, the people who received government handouts are spending more than they are getting handed. Sounds like a sustainable recovery.
  • Great news!!! The Savings rate is back down to 2.7%. You can count on American Idiots to stop saving when the future is SO BRIGHT. They can fall back on the $10,000 they have in the 401k at the age of 45.

This report is a disaster. Only a moron on CNBC would spin it in a positive way.

Personal Income and Outlays, March 2010

Personal income increased $36.0 billion, or 0.3 percent, and disposable personal income (DPI)increased $32.3 billion, or 0.3 percent, in March, according to the Bureau of Economic Analysis.Personal consumption expenditures (PCE) increased $58.6 billion, or 0.6 percent. In February,personal income increased $7.1 billion, or 0.1 percent, DPI increased $4.3 billion, or less than 0.1percent, and PCE increased $56.4 billion, or 0.5 percent, based on revised estimates.Real disposable income increased 0.2 percent in March, compared with an increase of less than 0.1percent in February. Real PCE increased 0.5 percent, the same increase as in February. 2009 2010 Nov. Dec. Jan. Feb. Mar. (Percent change from preceding month)Personal income, current dollars 0.4 0.4 0.4 0.1 0.3Disposable personal income: Current dollars 0.4 0.5 -0.2 0.0 0.3 Chained (2005) dollars 0.2 0.3 -0.4 0.0 0.2Personal consumption expenditures: Current dollars 0.5 0.4 0.3 0.5 0.6 Chained (2005) dollars 0.3 0.2 0.1 0.5 0.5 Wages and salariesPrivate wage and salary disbursements increased $11.8 billion in March, compared with an increaseof $6.8 billion in February. Goods-producing industries' payrolls increased $2.2 billion, in contrastto a decrease of $3.3 billion; manufacturing payrolls increased $0.3 billion, in contrast to a decreaseof $1.1 billion. Services-producing industries' payrolls increased $9.6 billion, compared with anincrease of $10.0 billion. Government wage and salary disbursements increased $1.8 billion, comparedwith an increase of $0.9 billion. Other personal incomeSupplements to wages and salaries increased $3.2 billion in March, compared with an increase of $3.0 billion in February.Proprietors' income increased $2.7 billion in March, in contrast to a decrease of $3.3 billion in February.Farm proprietors' income decreased $5.2 billion in March, the same decrease as in February. Nonfarmproprietors' income increased $7.9 billion in March, compared with an increase of $2.0 billion in February.Rental income of persons increased $1.9 billion in March, compared with an increase of $1.8 billionin February. Personal income receipts on assets (personal interest income plus personal dividend income)decreased $8.3 billion, compared with a decrease of $8.4 billion.Personal current transfer receipts increased $24.9 billion in March, compared with an increaseof $7.3 billion in February. Emergency unemployment compensation boosted the level of “other”personal current transfer receipts by $12.0 billion at an annual rate in March.Contributions for government social insurance -- a subtraction in calculating personal income --increased $2.0 billion in March, compared with an increase of $1.0 billion in February. Personal current taxes and disposable personal incomePersonal current taxes increased $3.7 billion in March, compared with an increase of $2.8 billion inFebruary. Disposable personal income (DPI) -- personal income less personal current taxes -- increased$32.3 billion, or 0.3 percent, in March, compared with an increase of $4.3 billion, or less than0.1 percent, in February. Personal outlays and personal savingPersonal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased$60.6 billion in March, compared with an increase of $58.3 billion in February. PCE increased$58.6 billion, compared with an increase of $56.4 billion.Personal saving -- DPI less personal outlays -- was $304.0 billion in March, compared with $332.2 billionin February. Personal saving as a percentage of disposable personal income was 2.7 percent in March,compared with 3.0 percent in February. For a comparison of personal saving in BEA’s national income andproduct accounts with personal saving in the Federal Reserve Board’s flow of funds accounts and dataon changes in net worth, go to www.bea.gov/national/nipaweb/Nipa-Frb.asp. Real DPI, real PCE and PCE price indexReal DPI -- DPI adjusted to remove price changes -- increased 0.2 percent in March, compared with an increaseof less 0.1 percent in February.Real PCE -- PCE adjusted to remove price changes -- increased 0.5 percent in March, the same increase asin February. Purchases of durable goods increased 3.4 percent in March, compared with an increase of1.0 percent in February. Purchases of motor vehicles and parts accounted for most of the increase indurable goods in March. Purchases of nondurable goods increased 0.4 percent in March, comparedwith an increase of 0.7 percent in February. Purchases of services increased less than 0.1 percent,compared with an increase of 0.4 percent.PCE price index -- The price index for PCE increased 0.1 percent in March, compared with an increase of lessthan 0.1 percent in February. The PCE price index, excluding food and energy, increased 0.1 percent,compared with an increase of less than 0.1 percent.