It looks like the current Administration really is doing a great job of “fixing” the US economy.<\/p>\n
In January 2013, disposable That\u2019s the largest single-month drop since 1959 – or in at least 54 years.\u00a0 I say “at least” because 1959 is when the statistics for monthly changes in inflation-adjusted disposable income begin.<\/p>\n Consumers spent a bit more in January 2013, even while having 4% less to spend.\u00a0 What that means is that consumers are saving less or going further in debt.\u00a0 Neither is a good thing for the economy\u2019s long-term health.<\/p>\n Other indicators, except for inflation, were similarly bad.\u00a0 Inflation was about the sole bright spot \u2013 1.3% for the Jan 2012-Jan 2013 period.\u00a0 However, even that low level of inflation hurts when disposable incomes are shrinking.<\/p>\n And in case you were wondering \u2013 yeah, the new taxes which kicked in at the beginning of the year were the primary cause of the drop in disposable income.<\/p>\n Details can be found here<\/a>.<\/p>\n Oh, by the way:\u00a0 that 1.3% inflation (Jan 2012 to Jan 2013) does not<\/span> include the recent spike in gasoline prices.\u00a0 That price spike happened largely in Feb 2013.\u00a0 On January 28, 2013, the national average price of regular-grade gasoline was $3.296\/gallon.\u00a0 On February 25, 2013 – $3.722\/gallon –\u00a0an increase of $0.426\/gallon, or over 12.9%<\/a>, in less than a month.<\/p>\n On another “cheery” note – under the current administration, the Federal government has now added $6+ trillion in new debt<\/a> – in 4 years and 40 days<\/em>.\u00a0 That’s “trillion” with a “T”, or<\/p>\n That’s an average of not quite $1.5 trillion in new Federal debt added during each of the past four years.<\/p>\n <\/p>\n The words of Pyrrhus of Epirus come to mind:\u00a0 \u201cAnother such \u2018victory\u2019 and we shall be utterly ruined.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"inflation<\/del> income – adjusted for inflation – dropped 4%.\u00a0 For those who’ve forgotten:\u00a0 disposable income is what you have left after taxes and other mandatory deductions.<\/p>\n$6,000,000,000,000.00+<\/h2>\n