The David Lin Report Personal Incomes Plummet: What’s Behind The $109-Billion Decline? | Bob Elliott
Jul 2, 2025
Bob Elliott, CEO and CIO of Unlimited, shares insights on the unsettling state of the U.S. economy. He reveals a staggering $109.6 billion drop in personal incomes, highlighting the shifting dynamics of household demand. Elliott discusses stagnant labor markets, hinting at a potential hiring freeze and declining real wages. He also explores troubling tariff impacts on inflation and the gold market's struggles amidst a high stock market. With a sharp focus on consumers' buying power, Elliott warns of a looming economic ‘season of disappointment.’
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Market-Economy Growth Divergence
- The stock market prices high growth while economic growth is decelerating rapidly.
- This divergence suggests a looming season of disappointment in economic performance versus expectations.
Real Household Demand Weakness
- Household demand has been negative on a real basis since the start of the year.
- This is unusual since trend growth had been around 2-2.5% over recent years.
Labor Market Growth Deceleration
- Although unemployment rate stays stable, labor market growth is sharply slowing.
- Hiring has nearly halted, as shown by payroll adjustments and independent reports.