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Majestic Overshoot of Stimulus Money Ended. Faced with 2nd Wave, Americans Cut Back, Even on Durable Goods

Consumers still earned more in November than in the Good Times, but a lot less than back when free Pandemic-money was massively hailing down.

By Wolf Richter | 23 December 2020

WOLF STREET — Consumers are starting to run out of artificial steam. The free Pandemic money has been dropping for months and in November nearly faded out. For the first time since April, consumers spent less all around; they spent less on services, nondurable goods, and even on durable goods, which had been spiking in astounding manner.

Personal income.

Personal income from all sources in November fell 1.1% from October, to the lowest since March, to a seasonally adjusted annual rate of $19.49 trillion, according to data from the Bureau of Economic Analysis today. It was down 7.6% from its fabulous stimulus-and-extra-unemployment-money-induced spike in April. But it’s still up 3.8% from the Good Times a year ago, now, during the Pandemic when over 20 million people are still claiming state or federal unemployment benefits:

All dollar numbers cited here are “annual rates.” The BEA releases the personal income and spending numbers in form of seasonally adjusted “annual rates.” They extrapolate from the data of the current month what an entire year might look like at this rate, roughly multiplying the number of the current month by 12, plus and minus some adjustments. For example, in 2019, personal income was on average $1.54 trillion per month for an annual total of $18.5 trillion.
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1 Comment on Majestic Overshoot of Stimulus Money Ended. Faced with 2nd Wave, Americans Cut Back, Even on Durable Goods

  1. Why not close down the Senate Congress, gov mercenaries, tax offices, IRS and all NON ESSENTIAL gov parasite offices? They aren’t really doing anything anyway

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