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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums60% of consumer spending is done by just the top 20% of income earners
Americas income inequality has grown so wide that the current recovery is driven primarily by the upper fifth of income earners, as revealed by the latest consumer spending data. Right now, more than 60% of all consumer spending is done by just the top 20% of income earners. And retailers are noticing.
This is the America thats in recovery. Who is part of that 20% with most of the spending money? First, obviously, are the bigs (the Kochs, the Edelsteins, the Rubins and Dimons, the hedge fund kings and queens). The next level down includes their top retainers (those who are paid or campaign-financed to serve their financial interests
people like, well
). And finally, theres the broad class of well-paid and needed professionals, those who get the real trickle-down, who earn real money when the economy is good. Doctors, lawyers, high-tech pros, engineers, sales types, the people at the airport on a weekday. Everyone with a needed skill who keeps the machine running and whose job cant be outsourced.
Inflation-adjusted incomes below that point have collapsed, or gone flat with barely a hint of recovery. Well show this data in two ways below. Read on.
http://www.nakedcapitalism.com/2014/02/gaius-publius-rising-inequality-recovery-occurring-almost-exclusively-among-wealthy.html
Pretzel_Warrior
(8,361 posts)I would imagine the top quintile have long had a much bigger impact on economic recovery/consumer spending than other groups.
Warpy
(110,900 posts)although just by the skin of my teeth. I still live on a bottom 20% income. The difference is that I'm not scared all the time.
That is a huge difference.
I have enough. I don't need or want more.
FreeJoe
(1,039 posts)Studies I've seen show that while the traditional middle class jobs are disappearing, they are growing on the low and high end, with the high end starting near the 80th percentile. This all makes sense. I'm in a fairly similar job to what my father had and my earnings are noticeably higher than his were.
The lesson that I've been trying to teach my kids is that the reward curve is getting steeper. The comfortable middle is disappearing. It isn't just policy that is making that happen because we see the same thing all around the world. They need to either be high performers or be prepared for a considerably lower relative standard of living.
I already see it in my nieces and nephews and my friends kids. Some are already settling into low wage careers while others are getting out of college starting at near or above six figure incomes.
woo me with science
(32,139 posts)How sick, vicious, and unconscionable the corporate hijacking of our political system has become.
rbrnmw
(7,160 posts)Scuba
(53,475 posts)cantbeserious
(13,039 posts)eom
ananda
(28,781 posts)I'm almost fully retired now, so my pension is fixed, while
my cd's, IRA's, and annuities are earning interest or gaining.
I don't feel all that affluent, though I'm definitely comfortable.
Since rent keeps rising, and water and electricity rates have
increased, I have found ways to lower other expenditures so
I can still save about the same amount each month.
I lowered my car insurance bill by $80 a year by switching to
Progressive, thanks to DU info. Thank you, DUers!
I lowered my phone bill to $28/mo thanks to AARP's discounted
Consumer Cellular plan, and it works with an iPhone.
I lowered my cable tv/internet cost by $40/mo by switching
to basic cable.
I lowered my monthly food cost by $150 by not shopping at
Whole Foods, but spreading out to different stores for the best
prices. I learned that all the stores have natural meats and organic
products that are much cheaper than those at WF.
Also, my Medicare Advantage plan is saving me considerable money
in healthcare costs, so that helps too. Plus, not driving nearly
as much means less in car costs.
So far so good.