The good news keeps on coming! This time, however, it’s about the touchy subject of personal incomes. For the first time in what seems like forever, we finally have good news!
Hartford Courant reports that personal incomes surged in the first quarter of 2018, totaling a rise of 4.6 percent. The last time that happened was in 2014.
Economist Don Klepper-Smith, who continually warns of an impending recession in the state, sighed in relief:
“This is a good way to start out 2018. When you look at eight, 10, 12, 13 quarters of data, this is a good news story.”
However, there is still some bad news with the good. Meaning, other personal expenditures saw a boost, too.
Gas prices, taxes, health care costs, and others also increased in the past year. With that, it means consumers won’t spend their newfound salaries as anticipated.
Something Klepper-Smith pragmatically added:
“Right now, when you factor in inflation, factor in taxes, there’s little change [for the] consumer.
Which, obviously, trickles down to the state economy, which could potentially impact small businesses and attractions.
Meaning, personal incomes reflect a similar rise in money owed to the state and Uncle Sam. Considering the state continues to lag in all economic reports, this dark cloud definitely eats up the silver lining.
But, these rising incomes do help the economy, albeit a little. Maybe if we elect politicians who don’t resort to taxing and spending ourselves out of a debt, maybe we’ll actually see people use their higher salaries for the greater good.
What do you think? Do you see this as promising news or something that won’t matter until we close out 2018 with a full personal income report?