Post by jeffolie on Apr 30, 2011 8:46:11 GMT -6
Gas up, eats fake 'income gains'
Gas did eat the tax reduction which falsely has been called an income gain become 'income gain' make it wrongly seem that more wages were being earned while most of the 'income gain' was a government handout reducing SS payments which increases debts/deficits by the same amount.
Gas prices, food prices, health insurance prices, tuition prices, higher traffic tickets & fees...all these and more suck out average Americans savings or wages if they are working and even eat into governments handout programs. Screwflation rules while the upper 20% of income earners offset these higher expenses with new recovery highs in the stock markets and investments while home equity falls.
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Gas prices cut income gains
ECONOMY: Money from payroll tax deduction has ended up filling tanks.
04/30/2011
WASHINGTON - U.S. consumers as a whole will likely spend more this year. But it's not because we'll all be earning more money. Even people lucky enough to get a raise will likely spend most of the extra dollars to pay higher gas and food prices.
Yet employers are hiring more freely this year and more people working means more money being spent to fuel the economy.
"It is hard to spend money without an income. More jobs will be good for consumer spending," said David Wyss, chief economist at Standard & Poor's in New York.
Americans made more money and spent more money in March, the Commerce Department reported Friday. But after adjusting for inflation, spending rose only 0.2 percent.
Consumer spending grew at an annual rate of 2.7 percent in the January-March period. That was a sharp decline from the 4 percent growth in the previous quarter.
Less spending led the overall economy to grow at only a 1.8 percent annual rate in the first three months of the year - weaker than the 3.1percent growth in the October-December quarter of 2010.
Americans were poised to spend more after Congress gave them a 2percentage point cut in Social Security payroll taxes. But a steady rise in gas prices has siphoned away most of that extra money, leaving consumers with less discretionary money.
"Consumers have been taking the money from their tax cuts and putting it in their gas tanks to drive to work," said Mark Zandi, chief economist
www.presstelegram.com/ci_17963295
Gas did eat the tax reduction which falsely has been called an income gain become 'income gain' make it wrongly seem that more wages were being earned while most of the 'income gain' was a government handout reducing SS payments which increases debts/deficits by the same amount.
Gas prices, food prices, health insurance prices, tuition prices, higher traffic tickets & fees...all these and more suck out average Americans savings or wages if they are working and even eat into governments handout programs. Screwflation rules while the upper 20% of income earners offset these higher expenses with new recovery highs in the stock markets and investments while home equity falls.
==========================================
Gas prices cut income gains
ECONOMY: Money from payroll tax deduction has ended up filling tanks.
04/30/2011
WASHINGTON - U.S. consumers as a whole will likely spend more this year. But it's not because we'll all be earning more money. Even people lucky enough to get a raise will likely spend most of the extra dollars to pay higher gas and food prices.
Yet employers are hiring more freely this year and more people working means more money being spent to fuel the economy.
"It is hard to spend money without an income. More jobs will be good for consumer spending," said David Wyss, chief economist at Standard & Poor's in New York.
Americans made more money and spent more money in March, the Commerce Department reported Friday. But after adjusting for inflation, spending rose only 0.2 percent.
Consumer spending grew at an annual rate of 2.7 percent in the January-March period. That was a sharp decline from the 4 percent growth in the previous quarter.
Less spending led the overall economy to grow at only a 1.8 percent annual rate in the first three months of the year - weaker than the 3.1percent growth in the October-December quarter of 2010.
Americans were poised to spend more after Congress gave them a 2percentage point cut in Social Security payroll taxes. But a steady rise in gas prices has siphoned away most of that extra money, leaving consumers with less discretionary money.
"Consumers have been taking the money from their tax cuts and putting it in their gas tanks to drive to work," said Mark Zandi, chief economist
www.presstelegram.com/ci_17963295