Sorrasek Essay

1762 WordsMar 12, 20148 Pages
Personal Income Personal income is the income individual received from all sources. Personal income includes compensation from a number of sources. Those sources include 1) wages and salaries, 2) proprietors’ income which refers to the current-production income of sole proprietorships, partnerships, and tax-exempt cooperatives, 3) rental income, 4) dividend income; the one receiving as a stockholder, 5) interest income; the one receiving as creditor, 6) transfer payments which refers to payments made to individuals by the federal government through various social benefit programs, and 7) other labor income. Personal income is measured before the deduction of personal income taxes and other personal taxes. Personal income determines consumer consumption since it decides the disposable income that consumer can actually spend. Personal income tends to display a rising trend during periods of economic expansion, and show a stagnant or slightly declining trend during recessionary times. Having higher personal income doesn’t always imply prosperity in a society. The increased amount money in circulation can cause inflation so it leads to the weaker purchasing power per unit of money. Analysis on Income Group (By Region) This graph represents the average monthly income per month, which consists of fiveregions, which are Central, North, Greater Bangkok, South, and Northeast. It also shows the average monthly income per month of all of country between years 2002-2011. From this figure, we can see that the average monthly income per month of all of country (Orange line) increases every year. In the other hands, in some regions were decreasing in average monthly income per month which were Greater Bangkok and Central. For Greater Bangkok (Green line), between years 2002-2004 had decreased in the average monthly income per month for 0.2 percent. This

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