Declining personal incomes don’t bode well for consumer demand or job growth.

The Bureau of Economic Analysis today reported that personal income fell .1% in August while personal consumption expenditures increased by .2% also in August.

On the surface it looks like we should expect a decreasing demand for goods and services that would give even less incentive to businesses to hire in near and immediate term.

What I find just as disturbing is that Americans may we may be biting into our savings just to keep a roof  over our heads and food in a kids’ tummies.

Are businesses uncertain about regulation?  It may, based on these numbers, really be more like uncertainty about job and income growth.

Policy wise, this should send a message to Republicans and some businesses to chuck the hollow talking points about getting government off of our backs and start thinking of outside the box ways for the everyday guy to increase his personal revenue stream.

We have been kicking this problem down the road for over thirty years and it has come back to bite us.

About Alton Drew

Alton Drew brings a straight forward and insightful brand of political market intelligence. Alton Drew graduated from the Florida State University with a Bachelor of Science in economics and political science (1984); a Master of Public Administration (1993); and a Juris Doctor (1999). You can also follow Alton Drew on Twitter @altondrew.
This entry was posted in Economy, personal consumption, personal income and tagged , , . Bookmark the permalink.

One Response to Declining personal incomes don’t bode well for consumer demand or job growth.

  1. Kenneth J. Ciszewski says:

    I’m shocked!

    “Policy wise, this should send a message to Republicans and some businesses to chuck the hollow talking points about getting government off of our backs and start thinking of outside the box ways for the everyday guy to increase his personal revenue stream.”

    You mean they should actually think about helping someone besides themselves and their rich freinds, and take an interest in their fellow citizens instead of just letting businesses pile up the money as fast as they can? That’s blasphemy! That’s socilasim. Heck, it might be communism!!

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