See the figures, especially in Table 1 here, at the Bureau of Economic Analysis.
After reaching a peak in July, August personal income fell below that of July, but is still higher than personal income was in June, and January.
The Weekly Standard is making much of the steady decline in income growth so far in 2011 here, but without once mentioning the boost to incomes the temporary reduction in the payroll tax was supposed to supply.
According to the Bureau of Labor Statistics here, average weekly hours have been stagnant for a year, so income gains cannot be coming from more hours worked. In fact, all other things being equal, you would expect nominal income to remain the same. Which is to say, no one is getting much of a raise, but they still have jobs.
But here the BLS shows that average weekly earnings have increased 1.85 percent year over year in August 2011.
Hm.
Interestingly enough, the difference between a payroll tax of 6.25 percent on $100 of income and 4.25 percent on $100 of income is . . . $1.82 less tax, going straight into people's paychecks.
And after 7 months in 2011, using the seasonally adjusted annual numbers of the BEA, income is up 1.94 percent, including the downtick in August.
1.85, 1.82, 1.94 . . . looks like a pattern to me.
Nominal incomes are up slightly in consequence of the payroll tax cut. Otherwise, it's a stagnant income picture, just like the unemployment picture.
Unless of course you factor in CPI and discuss real incomes. But that's a whole other, and very real, problem.
