US: Rich boost profits, workers trail, poor face cuts

Are things getting better or worse? Depends on how you make your money, reports the Federal Reserve Bank of Philadelphia, citing US Bureau of Economic Analysis data:

CAPITAL: "Dividends, interest, and rents increased more than 2 percent in the fourth quarter in all three states and the nation.

LABOR: "Wages and salaries grew more modestly at a quarterly rate of 0.6 percent in Delaware, 0.7 percent in New Jersey, 1.1 percent in Pennsylvania, and 0.8 percent in the nation.

GOVERNMENT: "Quarterly growth in transfer payments slowed to 0.4 percent in Delaware, halted at 0.0 percent in the nation, and declined in New Jersey (0.3 percent) and in Pennsylvania (0.1 percent)."  -- So:

- If you own stocks, bonds, apartments or other assets, your income, on average, is at least keeping pace with inflation.

- If you work for someone else, your income's recovering very slowly. (Actually it's still falling, if you factor in the price of bread, meat and gasoline.)

- If you depend on government checks, it's time to get a job. Or buy a building.  (Though if you could do that, you wouldn't depend on government. Would you?) 

Continue Reading