US consumer spending edged up 0.2 percent in December, income up by largest amount in 8 years

Article by: MARTIN CRUTSINGER , Associated Press
Updated: January 31, 2013 - 10:32 AM

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tacotonyJan. 31, 13 3:07 PM

Incomes were up 2.7% because the Highest Income earners all awarded each other early bonus to stave off potentially higher income taxes payable for 2013. Spending increased by less than a 10th of that number. Think of what it means when the wealthiest 1% can skew the total income numbers just by getting getting their bonuses. Also note that it didn't benefit the economy or create new jobs because it was purely disposable income to them and they already had everything they desired so they chose to sit on the money. This is certainly their choice but think of the benefit to the U.S. economy if this money was added to the wages of the 99% of the people who would actually need to spend it.