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MONDAY, NOVEMBER 23, 2009
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14

Stimulus Boosts Americans' Incomes

Consumers tuck funds away: Savings rate hits 16-year high

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(Newser) – Incomes in the US got a big boost from federal stimulus dollars in May, the Commerce Department reported today. But weary consumers stashed most of that lucre away, sending the savings rate to a 16-year high. “Households are reverting to a more sustainable spending path vis-à-vis income,” one economist told the Financial Times.

Incomes jumped 1.4% in May, adding $167.1 billion to the economy. That doubled the 0.7% rise the month before. But with home prices and jobs continuing to dwindle, the hoarding is likely to continue. “Until there is meaningful and sustained improvement in labor market conditions, there will be no significant, sustained rebound in consumer spending,” said another economist.

This chart show personal income by month for the past 13 months.
This chart show personal income by month for the past 13 months.
In this April 11, 2009 file photo, Joe Walls empties a bag of fifty-cent-pieces into a Penny Arcade coin counting machine at TD Bank in Fairless Hills, Pa.
In this April 11, 2009 file photo, Joe Walls empties a bag of fifty-cent-pieces into a Penny Arcade coin counting machine at TD Bank in Fairless Hills, Pa.   (AP Photo/Mel Evans, File)
The stimulus has put more cash in American wallets.
The stimulus has put more cash in American wallets.   (Shutterstock)
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14 comments
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BeatBlaster
Jun 26, 09 2:13 PM CDT
I think we need to find a new way to make money. Oh wait.... aren't we supposed to be working on that right now? Reply
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0
Amber
Jun 26, 09 2:20 PM CDT
OMG this is terrible new's (for the GOP) as they have been attempting to say it had no good effects what so ever for the American people and perish the thought that in the end many more benifits such as raising the standard of living for the working class? This will cause them to get wrinkles I fear. Reply
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+7
IN RESPONSE:
AClotfelter
Jun 26, 09 2:25 PM CDT
I agree with what you are saying... but, "new's"?
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-1
doingtherightthing
Jun 26, 09 2:44 PM CDT
its a lie.......check your pocketbooks........tell me how much stimulus you got.........none.......social security no increase! Unemployment up to 10% or more now. Cutbacks at the government level as well as the private level. Raises on hold. Obama freezing salaries and it goes on.......now you dimwits think its all OK....not........the working class is the one getting hammered.......Ask those people at GM working in the factory how are they doing......they got there hourly cut.......what a bunch of terds. You couldn't get out of the way of a freight train if it was coming right at you...morons . Reply
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-4
IN RESPONSE:
Toon
Jun 26, 09 2:57 PM CDT
Yes it's terrible that the workers had to take another pay cut. But I guess Rush and Fox News can chalk up a victory since they are the ones always complaining that union workers are being paid too much.
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+1

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