Something funny happened on our way into recession last year: our personal income increased. Well, maybe not yours or your cousin Billy’s, but by and large personal income has grown faster than it has since the good old days under President Obama. And as you might expect, this growth would not have been possible without great government socialism:
Barb Rosewicz, Mike Maciag and Joe Fleming, “States Started Record Personal Income Growth in 2021,” Pew Charitable Trusts, updated 09/02/2021.
Note that capitalism last collapsed during the December 2007 to June 2009 recession (assuming you consider normal labor and environmental exploitation and failure to provide affordable health care and housing to be “functioning properly”), during the Recession from December 2007 to June 2009, personal income by up to 5%. But this time, with capitalism not only failing to function properly because of a pandemic, but also threatening to worsen the pandemic, we responded to a recession with far greater government aid, kept families afloat and set the stage for a much faster one economic recovery created. When we topped up Corona bailout funds in the first quarter of this year, enough Americans had enough cash to order more take-away meals and other items on Amazon to increase everyone’s regular income from work and other market / non-government sources.
But as you can see by the blue spikes of total income towering above the meager green circles in the graph above, our income growth in the first quarter of 2021 was almost entirely governmental:
The share of personal earnings from earnings – which includes wages, additional allowances such as employer-funded health care, and corporate profits – also increased, albeit far less than total state aid. Revenue for the first quarter of 2021, adjusted for inflation, was $ 177 billion higher than a year earlier, compared to a $ 2.8 trillion increase in revenue from all sources of government support. Profits rose for the third quarter in a row, above pre-pandemic levels after plummeting in the first few months of 2020. All but 10 countries recorded increases compared to the previous year [Barb Rosewicz, Mike Maciag, and Joe Fleming, “States Began 2021 with Record Personal Income Growth,” Pew Charitable Trusts, updated 2021.09.02].
The spending hand of the government accounted for most of the income growth in South Dakota, as everywhere else, but South Dakota also had the second-highest growth in income from labor, dividends, interest and rent, which helped us get the national average of. to surpass 14.4% and with 16.8% show the 13th-highest growth of the total personal income among the states:
Rosewicz, Maciag and Fleming, 09/02/2021.
In 2020, South Dakota personal income grew 5.82%, better than the national average of 4.86% and the highest in South Dakota since growing 7.13% in 2011.