Personal income grows at fatest rate during recession

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Personal incomes in Ohio grew last year at a faster rate than at any time since the recession.

Income for all people from all sources, including wages, investments, even welfare and unemployment benefits, rose by 4.6 percent in 2011 from 2010 to just more than $436 billion, according to data released Wednesday by the Bureau of Economic Analysis. That ranked Ohio 36th among all states for personal income growth.

Experts caution, however, that the personal income figure doesn’t account for inflation and shouldn’t be confused with real weekly and hourly wages, which factor in the rising costs of food, fuel and other commodities.

Inflation, which rose by 2.5 percent last year, reduces discretionary spending and the demand for goods and services that propels the economy and drives job growth, said Rudy Fichtenbaum, a labor economist as Wright State University.

Read more at DaytonDailyNews.com

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