Each Worker's Slice of After-Inflation-Income Pie Is Shrinking. But No Problem, They Spend Heroically

Each Worker's Slice of After-Inflation-Income Pie Is Shrinking. But No Problem, They Spend Heroically

A look at per-worker personal income, what’s left of it after inflation. By Wolf Richter for WOLF STREET. Adjusted for inflation, consumers’ personal income from all sources – from wages, interest, dividends, rental income, unemployment compensation, stimulus checks, Social Security benefits, etc. – so “real” personal income dipped by 0.2% in October from September to a seasonally adjusted annual rate of $17.7 trillion, up by only 0.8% from a year ago, according to the Bureau of Economic Analysis. Personal income last year and earlier this year gyrated wildly and was grotesquely inflated by the various stimulus payments and special unemployment benefits. Most of the pandemic-specials have now expired: Personal income without stimulus and transfer payments, after inflation – so this is personal income from labor, interest, dividends, rental property, etc. …
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