American households set a record-high rate for personal savings in April, saving 33% of their disposable income. Before the pandemic, that figure was closer to 8 percent
Cha-ching. Photo: Eric Gay/AP/Shutterstock You may be surprised to learn that Americans’ personal incomes rose sharply in April, up 10.5 percent from March on a seasonally adjusted basis, according to data released Friday from the Bureau of Economic Analysis. Disposable personal income rose 13 percent.
When you dig into the data, you can see how this happened: Employee compensation fell significantly as many workers were laid off or had their hours reduced, and proprietors’ income fell as many businesses closed or lost sales, but those declines were more than offset by an enormous increase in “other government social benefits to persons” — that is, regular unemployment insurance payments, expanded unemployment insurance under the CARES Act, and tax-rebate checks that went to most low- and...
In short, the CARES Act is working, for now, to shore up household finances.
This can’t go on forever, but it can go on a while longer. The enhanced unemployment benefits are scheduled to run out on July 31, which is almost surely too early for the pace of an economic recovery where some industries are more ready to resume normal-ish activity than others. Many Americans, especially in hard-hit sectors like hospitality and transportation, are likely to need extended support as they wait for their old jobs to be available again.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Why some Americans want to ‘make America white again’While Barack Obama became the US's first black president, the country shifted to the right electing Donald Trump as his successor. Trump's election promise to “make America great again” fuels the country’s racist movements.
Lire la suite »
National Institutes of Health chief says he understands why coronavirus guidelines confused AmericansFrancis Collins of the NIH says the shifting guidance on face masks reflects earlier efforts to preserve enough masks for first responders and a growing understanding of how the virus spreads.
Lire la suite »
Here’s why Citi says stocks have rallied — and why new fuel for gains is now neededIt has been another incredible month for stocks, even if Thursday’s session finished on a weak note. A Citi strategist mentioned that the rally was done without flows coming into equities, which particularly for stocks outside the U.S. is rare.
Lire la suite »
Prince William Reveals Why He Couldn't Cheer Too Loudly at Prince George's First Soccer MatchPrince William was in the stands with son Prince George, daughter Princess Charlotte and wife Kate Middleton, when Aston Villa took on Norwich City in October 2019
Lire la suite »
Cardi B Explains Why She's 'Not Against' Looting'Finally, motherf**kers is going to hear us now.'
Lire la suite »