The top 10% of income earners in the US now account for half of all consumer spending, a record high.
Please_Do_Not @ Please_Do_Not @lemm.ee Posts 5Comments 445Joined 1 yr. ago
Please_Do_Not @ Please_Do_Not @lemm.ee
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Unfortunately, it can also (and more often has in history) have the opposite effect. Because consumer spending is so highly concentrated among the best-off, we could see a significant spending contraction in lower brackets that would have a minimal effect on total spending.
The people who now fuel the market are those with the most insulation from tough times, so even if 100% of low earners found a way to halt 100% of their spending, big companies' profits would only dip 10%, and they'll end up retaining the customers who can handle price increases.