As most of the Covid special benefits run out, the people in the bottom half are starting to run out of money, while the top 20% and top 10% are still quite well-off. A lot of the money the people in the bottom 50% spent in the past two years is now in the accounts of the affluent.
A rise in interest rates is the most likely event that will shrink stock portfolios and house values, but for now they have the cash for increased spending.
So……..2008 all over again, only worse because that absolute incompetence and corruption of those in DC
Makes me glad I’m completely debt free.
So, rich people cause inflation when they spend their money?
Is that what the article says?
Not, the government printing more money?
I call bullshit on this.
Printing and pumping trillions more into the economy doesn’t help inflation either. But it does help the Democratic party to create more economic dependence by their constituents thus assuring repeat Democratic voters, which is all they’re really concerned with.
Sorry. My home value on Long Island jumped 33% in the last year. I didn’t rush out and start buying stuff. Instead I had to put aside $$ because Nassau County and my school district were gonna be coming for more of my real money.
Oh, yeah, inflation ain’t Biden’s fault. It is all the fault of wealthy Americans. BTW, $125,000 annual income ain’t wealthy.
Entire article is based on the faulty assumption smart ordinary people who have garnered and grown assets will now hock them to buy depreciating and overpriced goods like cars. WRONG! Sure, if there’s a need and available cash on hand, but no-one who has built up his finances has done so by going into debt for the “next phone” or latest model car - especially with the sticker price rape going on.
Far more people are going into debt to make that inflated car purchase with an extra $50k “dealer add-on” over sticker [actually saw that on a 2021 Jeep Grand Cherokee a couple of weeks ago in LA]
“Perhaps the most overlooked engine fueling inflation is the “wealth effect,” the extra spending from Americans feeling flush as their stock portfolios and home prices jumped by trillions during a tag-team, Olympic sprint for both. “
The BS is strong with this one.
Has the author ever met a rich person, or does he just resent his dad? :)
I don’t think so.
What do YOU think is “rich”?
Rich people have made a lot of money from the ongoing inflation. That is the nature of rapid inflation. It transfers real wealth from the middle class to the wealthy. They, as a result, spend more money. It is a cart and horse situation here.
Walmart greeters need to do income checks.
People making over $400,000/year shouldn’t be allowed in.
(Joke)
Check out Vail and Aspen for crazy real estate prices.
Nope. It’s the rich alright. The rich Mueller Chugites doing it. The Brandon’s. The Mitches. All the way home.
❎❎❎
The things they buy create jobs for people.
“BOAT BUILDERS SCUTTLED BY YACHT TAX”
https://www.sun-sentinel.com/news/fl-xpm-1993-08-16-9301300112-story.html
If I go to my favorite high-end steakhouse, and have a martini ($15), a salad ($12), a rib-eye ($55), a baked potato ($9), a bottle of good Cabernet ($90), and a Cognac ($20), plus 8% tax and a 20% tip, I've dropped $260 or so. The establishment gets a cut, my bartender and waiter get a cut, and various governments get cuts (not only from sales tax, but from the restaurant's income taxes). I have contributed to the economy in multiple ways. And I'm supposed to apologize for that?
Next time, I'll stay home and dine on beans and Bud. And if enough other people do that, the restaurant will fail, its employees will lose their jobs, and tax revenues will drop.
I see. So “rich” people don’t have to pay more for items. And the “rich” don’t have to buy fewer items. The rest of us do.
Inflation is so much more complicated since communists took control of Washington.