Our leaders and some of the most educated academics still say that government spending absorbs private savings despite "black and white," absolute, unequivocal proof that the opposite is true.
In today's personal income report the numbers were starkly clear: Government transfer payments (for Social Security, disability, medicare, medicaid and unemployment insurance) added $254 billion to personal income in the past year. In contrast, private wages and salaries DECLINED by $154 billion!
And personal savings in April reached a record of $620 billion!
Only government can be a net supplier of savings!!!
How can our leaders be so blind to the truth?? This nation's belief system is killing us!!
3 comments:
Pull back pull back
schmull back
all I've heard from the past month on BizRadio is that "there's going to be a pull back" in addition to "tax payer on the hook" and "get your money to china" and all that.
they have all come to their senses as far as the reality of the credits but they typo it as "printing money"
however they were all wrong on their pull back schmull schmack
all scare-t cats
Mike,
Last year I remember reading an analysis that worked out how 2008 was the first year where baby boomers could access early Social security (ie if you were born in 1946 you would turn 62 in 2008, Age 62 is the earliest you can file for social security) I wonder if this trend will continue as lead edge boomers take the social security and cut back on their earned income in a "semi-retirement". If so this type of report could become the normal trend.
Resp,
Matt,
It'll certainly be a feature of how these reports break down starting now and in the future, however, once job growth picks up again you'll see private wages and salaries moving back up. In addition, interest income will become a big component--just as it was in Reagan's first term--as the gov't pays more on its debt (higher rates?) or simply on the higher amount outstanding.
The truth about government being the net provider of savings is now the 800 pound gorilla standing in the room. When will our leaders and the public sit up and take notice? THAT's the $64 question.
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