Fox News
Expand
Browse All Video
Watch Live

You're watching...

US income average sees biggest drop in 20 years

Details

  • Description

    What's behind January's record 3.6 percent plunge?

  • Duration 3:21
  • Date

Clips

Also in this playlist...

Editor's Picks

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

The hour now a new report shows a huge drop in what it average Americans are earning.

According to Commerce Department personal income fell by three point 6% in January that's the biggest month to month -- like twenty years.

Analysts point that this could be paid back for a boosted -- during the month of December when a lot of companies handed out dividends and bonuses.

Ahead of planned tax hikes at the start of 2013 so that's probably what this is all about the government also reported it even win less money in our wallets.

Consumer spending went up in January.

But just -- that could explain that as well with us now the founder of -- of the financial services firm Ares capital management -- -- -- him.

So they handed out a lot of money December and then it kind of makes sense in spending goes up in January.

And that -- be handing out less money in January so this could just be a statistical blip of.

Nothingness and I think that's right chip I mean I think especially.

When you have an increase in the tax rates as we know as a result of the fiscal cliff coming up here this year there's going to be I think a lot less -- -- in people's pockets as a result of this but.

We saw this past month.

You know I think -- carry over effect to January of people you're spending a bit more as well as having a little bit more after tax income in their pockets I think it's a temporary thing.

I think it's also is a result of why the market has been driven to where it is and we live in a world chip right now I think we're.

The economic marketplace is international -- nature and it's very very complicated and sometimes it looks as if we've lost the owner's manual.

The good side of it is I think that.

The economy showing corporate profits being up there in the last quarter.

That my thank god the corporate profits are up corporate profits or edit edit edit at a level that we haven't seen in forever that won't hire anybody what I like is.

Housing looks really good housing seems to be ship like it's bottoming out I think that Ben Bernanke the Fed is done a good job.

Managing interest rates in keeping interest rates low and I think you're starting to see.

People put money to work in the housing market.

Because interest rates are so low.

And they can -- their borrowing costs obviously are are are very reasonable if you look at historical interest rate averages borrowing.

For a home I mean these are just you know record numbers and I think people are.

Are you know looking at their paychecks and trying to match.

They get the best deal that they can and it seems as if shifted banks.

Are becoming a little bit more lenient with their lending practices again.

We can hope I mean I think I'm watching the Dow every day and week at some point real -- it looks like we're gonna -- an all time high.

These companies are making it go -- rules of money they're not hire anybody and and and most of mart pay tax.

It's not think that's right and you know and and I think it.

When you look at positive signs it is sometimes it's difficult to do -- we still have a sixteen point 45 trillion dollar federal debt.

We still have an unemployment rate that historically is just you know astronomically high and it's been consistently.

Hi at this rate.

That the positives are increasing corporate profits I think you know weak dollar people say a weak dollar just -- -- it doesn't look good for the United States.

The upside to that is the United States manufacturers can make.

Products at a cheaper price and our exports will go up because things are cheaper so.

I'm trying to look at the glass half empty.

Or got a half full rather than -- it looks like a lot what.

People forget where we were you worried about this crazy things are bigger things are a lot a lot better -- -- thank you -- thank you.

Load More