Tuesday, September 27, 2011

Incomes, Spending Fell for Second Straight Year in 2010

The Obama Depression by the numbers.
Consumers earned less and spent less for a second straight year in 2010. The government report released Tuesday offered a deeper look at how Americans have adjusted their spending after the worst recession since the Great Depression.

People spent less last year on food, cut back on entertainment and eating out at restaurants and gave less to charity. At the same time, they paid more for gas and health care -- trends that have continued this year.

Total spending by consumers fell 2 percent last year, according to the Labor Department's annual survey of consumer behavior. It's only the second decrease since the government began the survey in 1984. The first came in 2009.

Incomes declined 0.6 percent in 2010, after a 1.1 percent drop in 2009.

This year, consumer spending and income have increased only modestly. High unemployment, meager pay increases and a spike in gas prices have slowed both.
Of course the numbers of vacations and golf outings for the Obamas surged, so at least not everyone is suffering.

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