As taxes rise, prices climb and incomes fall, it's the wealthiest U.S. households that are driving spending. Meanwhile, middle-class and poorer households are feeling the economic brunt.You get what you vote for, even if it's not what you wanted.
Behind that seeming paradox lies a consumer sector that is increasingly split in two: Wealthier households, buoyed by improving home values and a rising stock market, are spending more. Poorer ones, hammered by higher taxes and rising gas prices, are holding back.
"People in the top half of the income distribution are doing just fine. They're spending enough to keep the economy moving," said Mark Zandi, chief economist at Moody's Analytics. "But the lower half is having a difficult time keeping their heads above water."
Monday, March 4, 2013
Obama's Bifurcated Economy
I blogged the first week in January on how Obama's, tax, print, borrow and spend strategies are helping the rich while hammering the ordinary working stiff. It seems the Wall Street Journal and a talking head economist are catching on,