So How’s That GDP Growth Treating You?

Fight disinformation. Get a daily recap of the facts that matter. Sign up for the free Mother Jones newsletter.

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!

ONE MORE QUICK THING:

Or at least we hope. It’s fall fundraising time, and we’re trying to raise $250,000 to help fund Mother Jones’ journalism during a shorter than normal three-week push.

If you’re reading this, a fundraising pitch at the bottom of an article, you must find our team’s reporting valuable and we hope you’ll consider supporting it with a donation of any amount right now if you can.

It’s really that simple. But if you’d like to read a bit more, our membership lead, Brian Hiatt, has a post for you highlighting some of our newsroom's impressive, impactful work of late—including two big investigations in just one day and covering voting rights the way it needs to be done—that we hope you'll agree is worth supporting.

payment methods

ONE MORE QUICK THING:

Or at least we hope. It’s fall fundraising time, and we’re trying to raise $250,000 to help fund Mother Jones’ journalism during a shorter than normal three-week push.

If you’re reading this, a fundraising pitch at the bottom of an article, you must find our team’s reporting valuable and we hope you’ll consider supporting it with a donation of any amount right now if you can.

It’s really that simple. But if you’d like to read a bit more, our membership lead, Brian Hiatt, has a post for you highlighting some of our newsroom's impressive, impactful work of late—including two big investigations in just one day and covering voting rights the way it needs to be done—that we hope you’ll agree is worth supporting.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate