According to the Financial Times, US incomes surge as stimulus kicks in.
Personal income in the US surged in May thanks to an infusion of government stimulus funds, while consumers raised their spending modestly as confidence about the state of the economy continues to improve.
However, most of the monthly rise was the result of Federal benefit transfers and lower taxes. Americans, still facing rising job cuts and falling home prices, have been hoarding most of the additional funds, lifting the savings rate to a 16-year high in May....
The sharp rise in spending was mainly due to benefits payments doled out through the American Recovery and Reinvestment Act of 2009, which provides one-time payments of $250 to people who receive social security funds, veterans’ benefits or railroad retirement income. Although disposable personal income, which factors out taxes, rose by 1.6 per cent in May, it increased by just 0.2 per cent without the stimulus benefits.
Pity the poor conservatives. To a member, the house GOP voted against the stimulus and no Senator who is presently a Republican and comes from a state west of Maine voted for it. So it is clearly a Democratic bill, which means that Republicans are obliged to feel depressed every time a smivet of good news like this comes out.