Things cost more. People have less money. This is bad.
Personal income decreased $159.8 billion, or 1.3 percent, and disposable personal income (DPI) decreased $143.8 billion, or 1.3 percent, in June, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $41.4 billion, or 0.4 percent. In May, personal income increased $155.1 billion, or 1.3 percent, DPI increased $168.7 billion, or 1.6 percent, and PCE increased $9.0 billion, or 0.1 percent, based on revised estimates.
The MSM will blame the worst month-to-month drop in 4 years to Stimulus one time payments.
So, what is the year to year? June 2008, $12,354.2. July 2009, $11,934.9. Population June 2008, 304,360. Population June 2009, 307,104.
Absolute drop: $419.3 Billion, -3.4%. Relative to population: -4.3%.
Wages and salaries dropped almost twice what they were in May, but note manufacturing payrolls decreased less and service sector wages were hammered.
Wages & Salaries
Private wage and salary disbursements decreased $28.6 billion in June, compared with a decrease of $11.3 billion in May. Goods-producing industries' payrolls decreased $11.1 billion, compared with a decrease of $10.9 billion;
manufacturing payrolls decreased $6.7 billion, compared with a decrease of $8.4 billion. Services-producing industries' payrolls decreased $17.5 billion, compared with a decrease of $0.4 billion. Government wage and salary disbursements increased $2.8 billion, compared with an increase of $4.3 billion.
The only ones making money are landlords. Rental income has increased, $2.8 billion.
Savings? Remember how we were told people were saving? That dropped as well, from 6.2% to 4.6%.
This is bad, anyway you slice it...