All of the charts were updated, personal income continues to rise slowly. CPI-U continues to rise sharply. It all sums up to be a difficult time for consumers. Things are getting more expensive and yet were not seeing the increases in our personal income. So where does the money to pay for dental services come from?
I just updated the CPI-U, M1 and M2. Not much change.
Are you shifting income into this year? With the debate over repeal of the Bush Tax Cuts it’s likely that the top wage earners will see higher tax rates in the future. Continue reading
The Kiplinger Washington Newsletter says growth will be slow again in 2011. There is much talk of a double dip recession and of stagflation or even deflation. Some say that the recent surge in corporate profits that seem to bode so well as a sign of recovery are actually the opposite of that. That they are really due to the increase in productivity per worker because of the loss of jobs. Fewer people to pay means that a corporation can keep more of their money. Who knows for sure, no one of course, but I would be mindful of keeping some cash reserves in your hip pocket and doing some watchful waiting on the economy. More updates in the coming weeks!