The Real Economy: Volume 75

Government transfers fuel robust income and spending


Authored by RSM US LLP

Download The Real Economy Vol. 75



Government transfers from the end-of-year fiscal aid package were the primary catalyst for the 10% increase in income and the 2.4% jump in spending, a robust kickoff to what is going to be one of the more memorable years in economic activity in decades. The personal savings rate increased to 20% in January from 13.7% in December. The amount of national savings now stands at $3.93 trillion, $3.2 trillion above the pre-pandemic average. This combination of excess savings built up over the past year as a result of business curtailment and fiscal aid and stimulus that is in the legislative pipeline is the kindling what will likely be an economic boom later this year.

In this month’s The Real Economy, we examine the impact of government transfers, bridging the return to full employment, gender wealth parity, SPACs and capital markets, and cyberthreat trends in the middle market. Download the full report.