Real Disposable Personal Income Fell 1.7 Percent Last Quarter

While today’s announcement that GDP grew by 2.5 percent in the third quarter was a welcome improvement over the 1.3 percent of the second quarter, the Bureau of Economic Analysis also said that real disposable personal incomes (after-tax incomes adjusted for inflation) fell by 1.7 percent, after increasing 0.6 percent during the second quarter. The Washington Post’s Ezra Klein has called real disposable income “the number that could decide the election.”