{"id":178856,"date":"2020-06-16T16:52:53","date_gmt":"2020-06-16T20:52:53","guid":{"rendered":"https:\/\/cals.ncsu.edu\/?p=178856"},"modified":"2020-06-19T10:36:31","modified_gmt":"2020-06-19T14:36:31","slug":"economic-perspective-income-up-but-spending-down","status":"publish","type":"post","link":"https:\/\/cals.ncsu.edu\/news\/economic-perspective-income-up-but-spending-down\/","title":{"rendered":"Economic Perspective: Income Up, But Spending Down"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"Income Up, But Spending Down by Economic Perspective\" width=\"500\" height=\"400\" scrolling=\"no\" frameborder=\"no\" src=\"https:\/\/w.soundcloud.com\/player\/?visual=true&#038;url=https%3A%2F%2Fapi.soundcloud.com%2Ftracks%2F841411771&#038;show_artwork=true&#038;maxheight=750&#038;maxwidth=500\"><\/iframe><\/p>\n<p style=\"text-align: center\"><strong>MARY WALDEN:<\/strong><\/p>\n<p><span style=\"\">\u201cToday\u2019s program looks at income up, but spending down. Mike, the federal government recently released information on consumer income and spending during April. Were the numbers unusual?\u201d<\/span><\/p>\n<p style=\"text-align: center\"><strong>MIKE WALDEN:<\/strong><\/p>\n<p><span style=\"\">\u201cUsually we see those numbers go together. That is if income goes up, consumers do spend more. We did not see that in April of this year which is very, very unusual. What we saw was that consumer income actually jumped very much, 13 percent, but consumer spending fell 14 percent.\u201d<\/span><\/p>\n<p><span style=\"\">\u201cNow of course this is due to the virus crisis. Income rose very substantially for households because of the government financial assistance, but a lot of that money was earmarked for multi-months. That\u2019s why it wasn\u2019t all spent during April. The stimulus checks, for example, that many people received are set to hold them for several months.\u201d<\/span><\/p>\n<p><span style=\"\">\u201cOn the other hand, spending went down because many businesses were closed, and because people were responding to stay-at-home orders. The result is that consumers saved a lot of money in April, and it\u2019s going to be very interesting to see if they open their wallets, and open up their savings accounts and spend that money when the economy moves back to some normalcy.\u201d\u00a0<\/span><\/p>\n<p><span class=\"il\">Mike Walden<\/span>\u00a0is a William Neal Reynolds Distinguished Professor in the Department of Agricultural and Resource Economics at North Carolina State University who teaches and writes on personal finance, economic outlook and public policy.<\/p>\n","protected":false,"raw":"[embed]https:\/\/soundcloud.com\/user-653135353\/income-up-but-spending-down[\/embed]\r\n<p style=\"text-align: center\"><strong>MARY WALDEN:<\/strong><\/p>\r\n<span style=\"\">\u201cToday\u2019s program looks at income up, but spending down. Mike, the federal government recently released information on consumer income and spending during April. Were the numbers unusual?\u201d<\/span>\r\n<p style=\"text-align: center\"><strong>MIKE WALDEN:<\/strong><\/p>\r\n<span style=\"\">\u201cUsually we see those numbers go together. That is if income goes up, consumers do spend more. We did not see that in April of this year which is very, very unusual. What we saw was that consumer income actually jumped very much, 13 percent, but consumer spending fell 14 percent.\u201d<\/span>\r\n\r\n<span style=\"\">\u201cNow of course this is due to the virus crisis. Income rose very substantially for households because of the government financial assistance, but a lot of that money was earmarked for multi-months. That\u2019s why it wasn\u2019t all spent during April. The stimulus checks, for example, that many people received are set to hold them for several months.\u201d<\/span>\r\n\r\n<span style=\"\">\u201cOn the other hand, spending went down because many businesses were closed, and because people were responding to stay-at-home orders. The result is that consumers saved a lot of money in April, and it\u2019s going to be very interesting to see if they open their wallets, and open up their savings accounts and spend that money when the economy moves back to some normalcy.\u201d\u00a0<\/span>\r\n\r\n<span class=\"il\">Mike Walden<\/span>\u00a0is a William Neal Reynolds Distinguished Professor in the Department of Agricultural and Resource Economics at North Carolina State University who teaches and writes on personal finance, economic outlook and public policy."},"excerpt":{"rendered":"<p>Income and spending typically go up and down together, but was that the case this past April?<\/p>\n","protected":false},"author":8,"featured_media":145215,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"source":"","ncst_custom_author":"","ncst_show_custom_author":false,"ncst_dynamicHeaderBlockName":"","ncst_dynamicHeaderData":"","ncst_content_audit_freq":"","ncst_content_audit_date":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[1792,59,1171,1181],"tags":[321,141],"_ncst_magazine_issue":[],"coauthors":[1890,1646],"class_list":["post-178856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cals-weekly","category-economic-perspective","category-faculty-and-staff","category-newswire","tag-department-of-agricultural-and-resource-economics","tag-mike-walden"],"displayCategory":null,"acf":[],"_links":{"self":[{"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/posts\/178856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/comments?post=178856"}],"version-history":[{"count":1,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/posts\/178856\/revisions"}],"predecessor-version":[{"id":178858,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/posts\/178856\/revisions\/178858"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/media\/145215"}],"wp:attachment":[{"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/media?parent=178856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/categories?post=178856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/tags?post=178856"},{"taxonomy":"_ncst_magazine_issue","embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/_ncst_magazine_issue?post=178856"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/cals.ncsu.edu\/wp-json\/wp\/v2\/coauthors?post=178856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}