May 29, 2019
Two things for you to read this week. First, read the usual weekly article on how the economy touched bottom in the second half of May and has now begun to turn upwards.
But also read the piece on consumer spending and personal income. A huge drop in spending in April, but a equally huge increase in income in that month. As a result, a dramatic increase in the savings rate. People got their refund checks in April but couldn’t spend them in that month because of the lock-down. But they will spend that money in the months ahead. Once again, the recession just ended thanks to the refund checks.