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Personal income and spending

Summary:
Personal income went up with the crisis due to Federal transfers of the Cares Act, which subsequently faded: Personal income excluding government support continues to lag behind prior levels: Even with the higher levels of total personal income consumption has lagged and most recently decreased as government benefits expired: A part of consumption comes from buying on credit, and with employment down, fewer people qualify for credit. So while the additional income reduces the need for credit in order to spend, it appears the further drop in credit due to unemployment has resulted in a net drop in consumer spending:

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WARREN MOSLER writes Durable goods, pending home sales, personal income and spending, consumer credit

WARREN MOSLER writes New home sales, mortgage purchase applications, bank real estate lending, crude oil prices

WARREN MOSLER writes Consumer sentiment, unemployment claims, housing starts, lumber, retail sales, industrial production

WARREN MOSLER writes Small business index, JOLTS, corn

Personal income went up with the crisis due to Federal transfers of the Cares Act, which subsequently faded:

Personal income and spending

Personal income excluding government support continues to lag behind prior levels:

Personal income and spending

Personal income and spending
Even with the higher levels of total personal income consumption has lagged and most recently decreased as government benefits expired:

Personal income and spending
A part of consumption comes from buying on credit, and with employment down, fewer people qualify for credit. So while the additional income reduces the need for credit in order to spend, it appears the further drop in credit due to unemployment has resulted in a net drop in consumer spending:

Personal income and spending

Personal income and spending

WARREN MOSLER
Warren Mosler is an American economist and theorist, and one of the leading voices in the field of Modern Monetary Theory (MMT). Presently, Warren resides on St. Croix, in the US Virgin Islands, where he owns and operates Valance Co., Inc.

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