{"id":583201,"date":"2010-05-28T10:57:40","date_gmt":"2010-05-28T14:57:40","guid":{"rendered":"tag:theatlantic.com,2010-05-28:mt-57397"},"modified":"2010-05-28T10:57:40","modified_gmt":"2010-05-28T14:57:40","slug":"good-news-income-now-growing-faster-than-spending","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/583201","title":{"rendered":"Good News: Income Now Growing Faster Than Spending"},"content":{"rendered":"

Americans’ income grew faster than spending in April. We’re earning more, we’re saving more and we’re spending the same. Good news for long-term recovery trends, because you don’t want a debt-fueled recovery coming out of debt-powered recession. Bad news in the short-term since consumption accounts for about two-thirds of GDP, by many measures. When consumption stalls, the economy stalls.<\/p>\n

But basically, this is cause for joy. Rising income means rising consumer confidence, which sets the stage for more private spending, and less private spending, in the future.<\/p>\n

Another interesting note for politicos is that when incomes rise, incumbents have a better shot at keeping their jobs. The relationship between growth in real disposable income and House seat losses<\/a> is statistically significant — much more so than unemployment. Most presidents lose House seats during midterms, but high income growth mitigate those losses, dramatically.<\/p>\n



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\nGross domestic product<\/a> – Consumption<\/a> – House<\/a> – Unemployment<\/a> – Recession<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Americans’ income grew faster than spending in April. We’re earning more, we’re saving more and we’re spending the same. Good news for long-term recovery trends, because you don’t want a debt-fueled recovery coming out of debt-powered recession. Bad news in the short-term since consumption accounts for about two-thirds of GDP, by many measures. When consumption […]<\/p>\n","protected":false},"author":1534,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-583201","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/583201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1534"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=583201"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/583201\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=583201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=583201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=583201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}