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Public benefits and stimulus checks have increased personal income past what it was before the pandemic

Government spending on public benefits has caused a boost in personal income for the state of New York.

Personal income is now 13% higher for the first quarter of 2021 compared to pre-pandemic levels.

One of the reasons for this growth however, is an increase in transfer payments of things like Social Security, unemployment insurance and economic stimulus payments from the last three months of 2020 to the first three months of 2021.


State Comptroller Thomas DiNapoli said that personal income consisting of public benefits increased from 16.4% to 28% over that 6 month time period.

While personal income has increased due to government spending, wages have not increased and earnings in 7 of the state’s 13 industrial sectors remains below pre-pandemic. The leisure and hospitality industry has fallen 56% from the first to the second quarter of 2020.

The state Division of the Budget predicts that personal income will fall around 19% between April 1 and March 31, 2022 due to people no longer receiving stimulus checks or enhanced unemployment.



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