Retail Sales

Retail sales jump by largest amount in 6 months

The May increase, double what economists had been expecting, provided the strongest evidence yet that the economy is getting a major boost from the $50 billion in economic stimulus payments the government sent out by the end of May, slightly less than half of the $106.7 billion scheduled to be sent out this year.

$50 billion in "free" economic stimulus payments allowed retail sales to temporarily jump $4 billion. That's ruthless government efficiency in action. I say temporarily because it is assumed we won't keep getting helicopter drops of money. That might not be the best of assumptions based on the overwhelmingly upbeat and positive praise of this current drop. Who doesn't like "free" money?

ADVANCE MONTHLY SALES FOR RETAIL TRADE AND FOOD SERVICES

Of that $4 billion, 25% was for extra gasoline station sales. Rumor has it that the price of gasoline went up. What do we care though? We got "free" money!

GASOLINE STATIONS

The stock market was initally up ~$170 billion today (see math in the footnotes) based on the $50 billion in economic stimulus payments generating $4 billion in retail sales but as the day went on it apparently became skeptical of its own overleveraged performance. It ended the day up about $50 billion. This makes complete sense if the entire $50 billion in temporary economic stimulus payments provides $50 billion in permanent prosperity. If so, the government really needs to get with the permanent prosperity program. Think what $50 trillion in temporary economic stimulus payments would do! We'd be literally rolling in money!

Footnotes:

The World Fact Book
Market value of publicly traded shares: $17 trillion (2005)

1% of $17 trillion is ~$170 billion. At one point the stock market was up ~1% today.