So How’s That GDP Growth Treating You?

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GDP was up 3.5% in the third quarter, and yesterday I wondered where all that growth was going.  Today we get part of the answer: not to workers.

The BEA reports that personal income and disposable personal income, adjusted for inflation, were down again in September and down for the entire quarter.  Spending was up in August thanks to Cash for Clunkers, but dropped 0.6% in September.

Separately, the BLS reports that the Employment Cost Index was up 0.4% in the third quarter.  However, since inflation rose about 0.6% in the same period, that’s a real decrease of about 0.2%.  “With incomes so soft,” analyst Ian Shepherdson said in a statement of the obvious, “increased spending will be a struggle.”

So: the economy is growing, but very little of that growth seems to be trickling down to us middle class types.  Happy holidays!

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THE BIG PICTURE

You expect the big picture, and it's our job at Mother Jones to give it to you. And right now, so many of the troubles we face are the making not of a virus, but of the quest for profit, political or economic (and not just from the man in the White House who could have offered leadership and comfort but instead gave us bleach).

In "News Is Just Like Waste Management," we unpack what the coronavirus crisis has meant for journalism, including Mother Jones’, and how we can rise to the challenge. If you're able to, this is a critical moment to support our nonprofit journalism with a donation: We've scoured our budget and made the cuts we can without impairing our mission, and we hope to raise $400,000 from our community of online readers to help keep our big reporting projects going because this extraordinary pandemic-plus-election year is no time to pull back.

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