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Thu Jan 31, 2013, 10:23 AM

American Incomes Rise By Most In Eight Years

Source: REUTERS

American incomes rose in December by the most in eight years, a positive sign for consumer spending that could help the economy sustain momentum early this year.

Personal income for Americans rose 2.6 percent last month, the Commerce Department said on Thursday. That was the biggest increase since December 2004 and well above analysts' expectations for a 0.8 percent gain.

Personal income rose in November and December, the Commerce Department said, because of special dividends and accelerated bonuses to beat increases in taxes this year.

The big rise in incomes suggests total consumer spending power entered the new year on stronger footing, even though much of the gains may not have been distributed evenly throughout the workforce.

Read more: http://www.nbcnews.com/business/economywatch/american-incomes-rise-most-eight-years-1B8192162

19 replies, 1915 views

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Arrow 19 replies Author Time Post
Reply American Incomes Rise By Most In Eight Years (Original post)
Purveyor Jan 2013 OP
Enrique Jan 2013 #1
denverbill Jan 2013 #2
dotymed Jan 2013 #6
primavera Jan 2013 #11
leveymg Jan 2013 #3
Purveyor Jan 2013 #5
Phlem Jan 2013 #16
blueclown Jan 2013 #4
dotymed Jan 2013 #7
coalition_unwilling Jan 2013 #8
magical thyme Jan 2013 #9
dtom67 Jan 2013 #10
Smilo Jan 2013 #12
DallasNE Jan 2013 #13
cheapdate Jan 2013 #14
Purveyor Jan 2013 #15
llmart Jan 2013 #17
montanto Jan 2013 #18
PATRICK Feb 2013 #19

Response to Purveyor (Original post)

Thu Jan 31, 2013, 10:33 AM

1. how much of that is Wall Street bonuses

just wondering.

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Response to Enrique (Reply #1)

Thu Jan 31, 2013, 10:40 AM

2. I think most of it is 'special dividends' that companies gave to beat the tax increase.

Not quite the same as Wall Street bonuses, but going to mostly the same people.

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Response to Enrique (Reply #1)

Thu Jan 31, 2013, 10:54 AM

6. My thoughts exactly.

How was this "massive" 2.6% increase distributed? Does any of the "bottom" 50% feel any richer?
I have been an FDR Democrat all of my life, it sickens me when I look to recent history. While reagan was the impetus for corporatism, most of the "average people destroying legislation" has come from democrats. All of the "free trade acts" have been implemented by democrats. Destroying Glass-Steagal, etc.. "They" know that if an "r" ties to implement these (or destroy) these programs, we will fight them. So, "they" find a professed democrat and have them do their dirty work..
We still have a few Democrats (and one great Socialist Democrat), however TPTB (yes, we do have those) do not allow them to become Presidents.
Only we can change this. Of course most democrats say that by voting for a real Democrat, you are just helping to elect a repub.
Bullshit, if we ALL unite behind a real Democrat (or Socialist Democrat) he/she can make a huge difference (positive) for average americans. With him/her on the inside and us working for change from the outside, we can change what has become of this country and get (health care for all) the things that we have never had.

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Response to dotymed (Reply #6)

Thu Jan 31, 2013, 11:36 AM

11. Same here

Government agencies love to tout averages, but the averages never tell you whether the increase benefited everyone or just the 1%. It's becoming a virtually meaningless statistic.

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Response to Purveyor (Original post)

Thu Jan 31, 2013, 10:46 AM

3. Not mine. eom

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Response to leveymg (Reply #3)

Thu Jan 31, 2013, 10:47 AM

5. I did an 'eye roll' myself. eom

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Response to Purveyor (Reply #5)

Thu Jan 31, 2013, 01:16 PM

16. mine's declining

I must be doing something wrong.

-p

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Response to Purveyor (Original post)

Thu Jan 31, 2013, 10:46 AM

4. " even though much of the gains may not have been distributed evenly throughout the workforce. "

In short, the 1% spent more money than usual at Tiffany's.

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Response to Purveyor (Original post)

Thu Jan 31, 2013, 10:58 AM

7. Here it is...

Personal income rose in November and December, the Commerce Department said, because of special dividends and accelerated bonuses to beat increases in taxes this year.

The big rise in incomes suggests total consumer spending power entered the new year on stronger footing, even though much of the gains may not have been distributed evenly throughout the workforce.

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Response to Purveyor (Original post)

Thu Jan 31, 2013, 10:59 AM

8. The reality for most working people is that the expiration of the payroll tax

 

holiday means their weekly take-home pay is REDUCED by 2%. So NBC is blowing hot air (or worse) when it suggests that this one-off big rise in incomes (mostly due to end-of-year bonuses and special stock dividends) will prop up consumer spending.

Oh wait. NBC is owned by GE, nation's 2nd largest defense contractor and proxy for the 1%.

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Response to Purveyor (Original post)

Thu Jan 31, 2013, 11:24 AM

9. since my income was zero in 2004

technically it is true. Any income would be an increase over zero.

Also, I started a second part time job at the end of November, since the hospital where I work cut my hours. So again, I had a big increase with 3 days/week added income, albeit at only 2/3s my pay at the hospital.

My 2nd job also increased payroll by 1 person starting, again, at the end of November.

And then the lab gave its first raise in 5 years -- 2%. I expect to take home an extra $2/day there as a result! $2.40/day 2nd shift on weekends!

Of course, I'm still making less than when I first started at the hospital 18 months ago with 4 days/week (versus the 2 days I will work for the entire month of February).

And my income still is barely 25% of what I made before the ruinous reign of W.

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Response to Purveyor (Original post)

Thu Jan 31, 2013, 11:26 AM

10. hmmm...

Constant dollars, anyone?
Also agree with most of the other posters.

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Response to Purveyor (Original post)

Thu Jan 31, 2013, 11:49 AM

12. My company froze all pay last year and has

no intention of removing the freeze.

Oh and the people who had to make that hard decision - bonuses, so for them I guess the report is true

But whoever put this report together really doesn't know his arse from his elbow

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Response to Purveyor (Original post)

Thu Jan 31, 2013, 12:35 PM

13. Giving A Big Bonus To Those Already Making Over $250,000

A year will not translate into very much consumer spending so I disagree with the conclusion that this data "suggests total consumer spending" will be "on stronger footing", in spite of the counter point about the gains not being evenly distributed. A far better number for that would be median household income.

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Response to Purveyor (Original post)

Thu Jan 31, 2013, 12:47 PM

14. If 500 average income workers...

see no rise in income, but one millionaire CEO gets a multimillion dollar bonus then, voila! "Personal income for Americans rose 2.6 percent last month."

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Response to Purveyor (Original post)

Thu Jan 31, 2013, 12:52 PM

15. Oh yippee! Our local mid-michigan gas prices are spiking up to $3.79 a gallon as I type.

Was 3.20 two weeks ago.

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Response to Purveyor (Reply #15)

Thu Jan 31, 2013, 01:41 PM

17. Yeah, I saw that in my travels to do errands yesterday.

Have you done your Michigan state taxes yet? Thanks to that a**hole Snyder, it looks to me like my state taxes went up and from what I've heard, next year the homestead exemption goes away.

I am always amazed that I even have to pay any taxes since I live on next to nothing. I get angry every time I think of how we have to pay taxes on Social Security!

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Response to Purveyor (Original post)

Thu Jan 31, 2013, 02:13 PM

18. If mine rose by 1 penny, which it didn't,

it would be the most in eight years of solid decline.

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Response to Purveyor (Original post)

Fri Feb 1, 2013, 08:32 AM

19. The big picture

By the time you break it down and most people appropriately rejoice it mostly means we are back to losing less. The Postal Contract- which the GOP howled against ever happening after zero increases gave us the one per cent raise in that period- when also the seasonal overtime got a little better as it always does. That affects a lot of the work force, albeit a unionized one.

For all that we have the GOP golden guillotine over our necks(Democratic Party acquiescence to half the fake rationale) surer than Russian nukes in the Cold War. And cuts cuts cuts and ruinous austerity continue as a foretaste of future rapine and plunder by profiteers.

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