econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 09 September 2017

How Is The Average Joe Doing?

Written by

When some think of the economy, they think of GDP. When I think of the economy, I try to visualize the average Joe and how he or she is doing.


Please share this article - Go to very top of page, right hand side, for social media buttons.


According to Federal Reserve Governor Lael Brainard:

Overall, the U.S. economy remains on solid footing, against the backdrop of the first synchronized global economic growth we have seen in many years and accommodative financial conditions. This benign outlook is clouded somewhat by uncertainty about government funding and the fiscal outlook, and geostrategic risk has risen ..... Of course, the likely economic effects of Hurricane Harvey raise uncertainties about the economic outlook for the remainder of the year.

Yes, employment seems to be improving (I look at employment-population ratios) - although it remains far from excellent.

And average wages (blue line in graph below) seem to be improving (really difficult to monitor median incomes in real time). It's all good if you have a job.

Indexed Real Wages and Salaries (Q1 2008 = 100) Per Employee

The red line on the above graph is real median household income which lags over one year.

But the chart which concerns me is consumption versus spending. The ratio of spending to income has been very elevated since September 2016. There have been only three extended periods in history where the ratio of spending to income has exceeded 0.92 (the months surrounding the 2001 recession, from September 2004 to the beginning of the 2007 Great Recession, and since September 2016).

Seasonally Adjusted Spending's Ratio to Income (an increasing ratio means Consumer is spending more of Income)

And personal savings rate nears historic lows.

Seems to me the average Joe is living from hand-to-mouth with little left over. This kind of trend increases financial inequality - and tends to create a big brother government which assists the average Joe to survive.

Other Economic News this Week:

The Econintersect Economic Index for September 2017 continues to remain in a tight range indicating static economic growth fundamentals for the fifth month in a row. However, this tight range remains in territory associated with normal growth. Six-month employment growth forecast is now indicating little change in the rate of employment growth.

Bankruptcies this Week from bankruptcydata.com: none

Weekly Economic Release Scorecard:

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Contributors








search_box
Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.







Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government





























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved