Republicans in Feb 2022 “The economy is too hot!” Republicans July 2022 “The economy is too cool!” Sigh. Hard to take them seriously about anything.
Compared to conspiracy theorists, science deniers, and people worshiping an obvious liar it’s hard to think bullshitters are worse. But that’s just me.
High inflation wipes out the purchase power of both savings and income gains. Savings rates never keep up with inflation. Savers have been taking it in the rear for years while the federal reserve has kept rates at historical lows. Real income, increased wages offset by inflation, reduces the purchasing power of any wage gains.
I did the math above…. If you are retired and have savings, and follow the 3% rule, the increase in what you make in savings interest does offset the actual cost of inflation, and then some….
You put a lot in one post so don't be quick to respond until I tell you when I'm done: 1. Your first graph does not illustrate what I said about real income being down and unable to keep up with inflation. Let's use the bottom graph on the page from the same site as it reflects income offset by inflation: What’s real about wages? | FRED Blog (stlouisfed.org) In Joe Biden's first 18 months, real income fell from 110.8 in January 2021 to 105.4 in June 2022, a -4.87% decrease in real income. Looking at June over June, real income fell from 109.3 to 105.4, a -3.90% decrease in real income. I said -3.60% in my post above off the top of my head but it is actually off -3.90% annually June over June. Real income is not keeping up with inflation under Joe Biden. Point 1 made. 2. The number of workers in June 2022 is less than the number of workers in January 20: Employment Situation News Release - 2022 Q02 Results (bls.gov) Employment Situation News Release (bls.gov) January 2020 Civilian Labor Force - 164,606 Civilian Labor Force Employed - 158,714 Participation Rate - 63.4 Unemployment Rate - 3.6 Unemployed - 5892 Not in Labor Force - 94,896 June 2022 Civilian Labor Force - 164,023 Civilian Labor Force Employed - 158,111 Participation Rate - 62.2 Unemployment Rate - 3.6 Unemployed - 5912 Not in Labor Force - 99,812 There are less workers in June 2022 than in January 2020. Point 2 made. 3. I don't know why you introduced a 102-year-old graph, but I must be dreaming. Trump left office with the US energy independent. Biden in office is begging from our enemies at the same time he has declared war on the fossil fuel industries. Joe Biden asked for advice that he has rejected, not serious other than to point fingers and brow beat. I instead offer you the American Petroleum Institute letter of recommendations to Biden: Letter-to-President-Biden-on-10-in-2022-Plan (api.org) I'd do everything on this 10-point list except #6. Big Oil needs to stay in their lane and not involve themselves with other matters they don't agree with but are in the national interests. The only reason gas at the pump is down is the Biden Administration is misusing the US Strategic Oil Reserve for short term political gains. When Biden's 6-month executive order runs out in October, gas at the pump will continue to march upwards presuming no changes to the Biden Administration energy policies. I'm Done.
This is a half truth… Jan 2021 was just a weird spike. Real income is higher now than it was dec of 2020, trumps last full month… point 1 contested.
You can only invest $10,000 and then wait 3-to-5 years. That doesn't help anyone's immediate retirement needs.
Why these 'unretirees' went back to work (msn.com) 5 Unexpected Reasons Retirees Are Returning to Work (aarp.org)
You can cash in with a last 3-month interest penalty after one year and no penalty starting at 5 years. It's not meant for long-term or emergency cash, just overflow cash not needed. I don't think of it as an investment.
Contest all you like WDG, but the link to the graph I used is 100% accurate along with the numbers I posted. Real income is down under Joe Biden both over 18 months, the last 12 months, and by the percentages I posted.
I’m not disputing its down if you cherry pick the starting point … just pointing out that Jan 2021 was a clear anomaly, as can clearly be seen in the FRED chart I posted.
Inflation on essential items (food, fuel, energy) continues crushing U.S. consumers, as a result spending on non-essential items continues dropping ( I am in the nonessential business and we are getting hammered). I have a warehouse full of unsold goods. I am not the only one. Consumer spending declined 1.08% for goods overall in the second quarter. Consumer spending represents two-thirds of all GDP in the United States. Americans buy lots of stuff, and when Americans stop spending on goods the economy stalls. The only way the Federal Reserve and central banks can raise interest rates into a recession, is if they deny a recession exists. And our economy may be doing better than others around the world, but the low and middle wage earners are taking a beating. This will get much worse and I did not expect the BEA to admit the U.S. economy was in recession.
Not really. The criteria for official recognition of a recession has been the same since 1978 and it's not defined as two consecutive quarters ... my guess is the NBER will label this a recession several months from now, like they did with Trump's recession. They took 18 months to label Spring of 2020 an economic trough.
10 out of the last 10 times the US experienced 2 consecutive quarters of negative growth it was later to be declared a recession. Do you dispute the negative number reported?
Oh yah, it's a recession. A recession with really low unemployment and increasing personal consumption.
