Everyone is Spending Our Money Now

Earlier this week, the federal government's Bureau of Economic Analysis released a press release around its June findings in the area of personal income and outlays. The Bureau seemed pleased that personal income and disposable income were both up in the U.S. during the month.

Personal income increased $18.7 billion, or 0.1 percent, and disposable personal income (DPI) increased $16.3 billion, or 0.1 percent, in June, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) decreased $21.9 billion, or 0.2 percent. In May, personal income increased $23.2 billion, or 0.2 percent, DPI increased $17.6 billion, or 0.2 percent, and PCE increased $5.9 billion, or 0.1 percent, based on revised estimates.

Real disposable income increased 0.3 percent in June, in contrast to a decrease of less than 0.1 percent in May, according to the Bureau.

All this may seem fine, like we're pulling ourselves out of something. But then I read further down in the release and found this:

Private wage and salary disbursements decreased $2.2 billion in June, in contrast to an increase of $15.0 billion in May. Goods-producing industries' payrolls decreased $1.8 billion, in contrast to an increase of $4.8 billion; manufacturing payrolls decreased $2.1 billion, in contrast to an increase of $4.1 billion. Services-producing industries' payrolls decreased $0.3 billion, in contrast to an increase of $10.1 billion. Government wage and salary disbursements decreased $0.4 billion, compared with a decrease of $0.5 billion.

How can Americans have more money if the private companies that employ them are paying out less? There is only one way. Americans are getting their money from the government, in the form of aid, benefits and unemployment.

The government, of course, is spending taxpayer money, which is money that until very recently belonged to you and I. This is not a recovery.