Personal income in April was... up? - Printable Version
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Personal income in April was... up? - stupac2 - 05-29-2020
[tweet]https://twitter.com/markets/status/1266348603574038530[/tweet]
Seems like the Cares act basically worked, the problem is that given the inherent uncertainty people aren't really willing to spend, instead saving what they can to cushion against downside risk. I think this is the big hope behind a V-shaped recovery, in theory if we can keep the most exposed sectors of the economy on ice until a treatment or vaccine, then we should be able to basically boot them back up once people are no longer afraid that they'll get sick or lose their job. Of course doing that is easier said than done and I'm not sure I have any confidence that the feds will actually manage to...
RE: Personal income in April was... up? - OutsiderFan - 05-29-2020
I'm using my "stimulus" payment to pay for one of my dogs to have a skin tag on his elbow removed that he can't leave alone. Haven't bought anything other than essentials since March.
I do need a new pair of shoes, however!
RE: Personal income in April was... up? - chrisk - 05-29-2020
It’s not just the propensity to save increased, it’s that the ability decreased. Some big ticket items like travel, restaurants, entertainment, and medical care have been difficult to spend money on.
That was a flaw in the design of the inappropriately monickered stimulus package: a lot of the money went to people who didn’t need it and ended up saving it.
RE: Personal income in April was... up? - Mick - 05-29-2020
(05-29-2020, 02:51 PM)stupac2 Wrote: [tweet]https://twitter.com/markets/status/1266348603574038530[/tweet]
Seems like the Cares act basically worked, the problem is that given the inherent uncertainty people aren't really willing to spend, instead saving what they can to cushion against downside risk. I think this is the big hope behind a V-shaped recovery, in theory if we can keep the most exposed sectors of the economy on ice until a treatment or vaccine, then we should be able to basically boot them back up once people are no longer afraid that they'll get sick or lose their job. Of course doing that is easier said than done and I'm not sure I have any confidence that the feds will actually manage to...
Interesting phenomenon. Every firm in our business has cut salaries/wages/draws/compensation. At the same time, because we've furloughed so many people, overtime is up as we try desperately to fulfill our mission.
Currently, the stimulus runs out on July 31 of this year. There will likely be another package, once the two parties can get out of each other's way.
RE: Personal income in April was... up? - stupac2 - 05-30-2020
(05-29-2020, 03:39 PM)OutsiderFan Wrote: I'm using my "stimulus" payment to pay for one of my dogs to have a skin tag on his elbow removed that he can't leave alone. Haven't bought anything other than essentials since March.
I do need a new pair of shoes, however!
A good chunk of ours went to a new water heater. It was frustrating, if it had died pre-covid I would've just replaced it myself, but so many options for getting around not having one aren't possible now, and taking multiple trips to Home Depot was a lot less appealing...
(05-29-2020, 06:33 PM)chrisk Wrote: It’s not just the propensity to save increased, it’s that the ability decreased. Some big ticket items like travel, restaurants, entertainment, and medical care have been difficult to spend money on.
That was a flaw in the design of the inappropriately monickered stimulus package: a lot of the money went to people who didn’t need it and ended up saving it.
I mean, sure, but what do you think should have happened? Also, to some extent increasing the savings rate is the point, because now more people have some cushion. Some brobdingnagian fraction of the population can't afford a $400 emergency, now that population is higher, which seems like a good thing to me.
RE: Personal income in April was... up? - oldalum - 05-30-2020
(05-29-2020, 03:39 PM)OutsiderFan Wrote: I'm using my "stimulus" payment to pay for one of my dogs to have a skin tag on his elbow removed that he can't leave alone.funny, my dog sucked up ours (and a lot more) with her 2 ACL tears in the last 7 weeks, one on each side. At least we spent it right away. Good thing veterinary medicine is considered an essential business. Who'd a thunk dogs would be a mainstay of the economy?