Consumption Outpaces Income Growth
This morning, the Commerce Department released its latest set of data on income and consumption. The good news? They are both growing -- Americans are earning
Jul 31, 2020626.9K Shares9.7M Views
This morning, the Commerce Department releasedits latest set of data on income and consumption. The good news? They are both growing — Americans are earning more, and spending more. The bad news? Consumption is growing faster than income, and Americans are saving less to fuel their purchases.
But as Paul Krugman notes: “We’re still in a liquidity trap, with Fed policy constrained by the zero lower bound. And a liquidity trap world is a paradox-of-thrift world, in which the virtuous individual decision to save more is a vice from the point of view of the economy as a whole. For now, it’s actually a good thing that consumers are behaving irresponsibly.”
Paolo Reyna
Reviewer
Paolo Reyna is a writer and storyteller with a wide range of interests. He graduated from New York University with a Bachelor of Arts in Journalism and Media Studies.
Paolo enjoys writing about celebrity culture, gaming, visual arts, and events. He has a keen eye for trends in popular culture and an enthusiasm for exploring new ideas. Paolo's writing aims to inform and entertain while providing fresh perspectives on the topics that interest him most.
In his free time, he loves to travel, watch films, read books, and socialize with friends.
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