The Real Economy: Volume 75
Government transfers fuel robust income and spending
THE REAL ECONOMY |
Government transfers from the end-of-year fiscal aid package were the primary catalyst for the 10% increase in income and the 2.4% jump in spending, a robust kickoff to what is going to be one of the more memorable years in economic activity in decades. The personal savings rate increased to 20% in January from 13.7% in December. The amount of national savings now stands at $3.93 trillion, $3.2 trillion above the pre-pandemic average. This combination of excess savings built up over the past year as a result of business curtailment and fiscal aid and stimulus that is in the legislative pipeline is the kindling what will likely be an economic boom later this year.
In this month’s The Real Economy, we examine the impact of government transfers, bridging the return to full employment, gender wealth parity, SPACs and capital markets, and cyberthreat trends in the middle market. Download the full report.
IN THIS ISSUE
Government transfers from the end-of-year fiscal aid package were the primary catalyst for the increase in income and jump in spending.
The Biden administration clearly intends to err on the side of a return to full employment as soon as possible.
Businesses have the opportunity to accelerate opportunities and provide a more equitable working environment in light of the pandemic.
The volume and dollar value of public listings went on a tear last year as private companies took advantage of a bullish stock market.
Middle market companies saw a sharp uptick in cyberattacks in the past year, according to an RSM US Middle Market Business Index survey.