Monday, June 01, 2009
- "Private wage and salary disbursements decreased $1.3 billion in April, compared with a decrease of $39.1 billion in March. Private wages and salaries had been reduced by an adjustment of $20.0 billion at an annual rate in January, in February, and in March to reflect smaller-than-usual bonus payments." Private wages are half of personal income. Government wages and benefits, unsurprisingly, rose in March and April.
- "Personal current transfer receipts increased $45.7 billion, compared with an increase of $34.3 billion. Provisions of the Federal Additional Compensation Program of the American Recovery and Reinvestment Act of 2009 boosted the level of personal current transfer receipts by $11.8 billion at an annual rate in April and $5.7 billion in March. The provision provides an additional $25 per week unemployment payment." That's right: Of the $58.2 billion increase in personal income overall in April, more than 3/4 comes from increased spending on unemployment checks. That's change we can believe in!
- "Personal current taxes decreased $63.6 billion in April, compared with a decrease of $34.1 billion in March. The Making Work Pay Credit provision of the American Recovery and Reinvestment Act of 2009 reduced personal current taxes $49.8 billion at an annual rate in April and $11.2 billion in March. The provision allows a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns." Disposable personal income -- income after taxes -- rose $121.8 billion, of which more than 80% comes from unemployment insurance payments and the tax credit -- which is really a spending program, since many of those receiving the credit have a zero tax liability without it.
Meanwhile, Russ Roberts updates the spending from ARRA: $37 billion as of this morning. That site includes in the figures payments for Social Security, so it's part of the transfer payments and not part of government purchases.
I await my visit from Norman Eisen now.