CHART OF THE WEEK

Transfer payments include government disbursements to individuals through programs such as Social Security, Medicare, Medicaid, etc.  Savings are domestically funded resources that finance investment.  Investment leads to capital accumulation.  More capital allows workers to be more productive and therefore gain higher incomes.

 

This chart shows both transfer payments and savings as a share of GDP.  The trend lines suggest that the more government pays out, the less people bother to save.  Lower saving rates slow capital accumulation, and this can cause incomes to stagnate.

LAST WEEK

News & Commentary Weekly Highlights:

• Wall Street Journal: At a Glance: Third-Quarter U.S. GDP (Friday)
• Bloomberg: My Second Thoughts About Universal Basic Income (Thursday)
• Moody’s Analytics: Gauging Big Firms' Power Over Wages (Wednesday)
• Bloomberg: How the Next President Could Save Social Security (Wednesday)
• Daily Signal: Socialist, Refugee Advocate to Run UN for Next 5 Years (Sunday)

 

Top Economic Indicator Highlights:

• Gross Domestic Product (Advance Estimate)
  • Real GDP growth: 16-Q3: 2.9%, 16-Q2: 1.4%, 16-Q1: 0.8% (seasonally adjusted at annualized rates)
  • Noteworthy: BEA (Bureau of Economic Analysis) attributes the Q3 growth acceleration to increases in private inventory investment, exports, federal spending, and a shrinking decrease in state and local government spending.

 

JEC Releases:

• Sens. Thune, Coats: Americans Deserve Sustained, Robust Growth (Friday)
• Nightmare on Main Street Series:
  • Overtime Rule Chases Salaried Workers into Hourly Jobs (Friday)
  • Making the Death Tax More Deadly for Family-Owned Businesses and Farms (Thursday)
  • Obamacare Premium Hikes Take a Bite Out of Family Paychecks (Wednesday)
  • Obama Administration Wraps Businesses and Families in Red Tape (Tuesday)

 

THIS WEEK

Upcoming Economic Data

• Monday
  • Personal Income/PCE Deflator (08:30am)
  • Chicago Purchasing Managers Index (9:45am)
  • Dallas Fed Manufacturing Survey (10:30am)
• Tuesday
• Construction (10:00am)
• CoreLogic Home Price Index (10:00am)
• ISM Manufacturing (10:00am)
• Dallas Fed Texas Retail Outlook Survey (10:30am)
• Motor Vehicle Sales (4:00pm)
• Wednesday
• ADP National Employment Report (8:15am)
• Federal Reserve's FOMC Statement (2:00pm)
• Thursday
  • Jobless Claims (8:30am)
  • Productivity and Costs (8:30am)
  • ISM Non-Manufacturing (10:00am)
  • Manufacturers’ Shipments, Inventories, & Orders (10:00am)
• Friday
  • Employment Situation (8:30am)
• Trade Balance (8:30am)