The department attributed to rise in incomes to pay raises for federal civilian and military employees, as well as cost-of-living adjustments to several government transfer payments programs. It said excluding these factors, incomes increased by 0.2 percent in January.
Incomes are up thanks to taking money from working people and giving the money to government workers and welfare recipients. By this logic, if you make $40,000 and I make $0, but the government takes all your money and gives it to me, we're both earning $40,000 per year.
And then some Keynesian retardation, but I repeat myself:
"There was a big increase in the savings rate to 5 percent. It is good that people save but it is not good that everybody saves at the same time. That makes the current downturn more severe and long lasting."
Savings jumped to an annual rate of $545.5 billion, the highest level since monthly records began in 1959. The saving rate surged to 5 percent in January, the biggest advance since March 1995, as households uncertain about the economy prefer to conserve their cash.
So during the 1950s to 1980s, when the savings rate was 10 percent, the economy did horribly? How does the savings rate get to 10% unless we're all saving at the same time? And yes, the savings rate needs to get to about 10%, or double current levels.
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