Brownstone Institute BY
Well, here’s another shocker. This Commerce Department report showed that real disposable personal income in March came in at -19.9% versus March 2021.
That staggering shrinkage, of course, is still another testimony to the old saw about “what goes around, comes around.” That is, last March real disposable incomes soared by nearly 29% owing to the massive Biden stimulus payments. But since then inflation has blasted skyward, even as Washington has run out of nerve on the fiscal stimulus front.
What this reminds, of course, is that we are not in an ordinary business cycle. Washington simply went berserk on the fiscal and monetary front in response to the economic dislocations caused by Trump’s foolish backing of Covid lockdowns. These massive stimmy eruptions, in turn, have created unprecedented turmoil and fluctuations in the quarterly flows of income and spending.
