Well, perhaps everyone should these days. Consumer spending accounts for roughly two-thirds of U.S. gross domestic product, or the value of all goods and services produced in the nation. And spending by the rich now accounts for the largest share of consumer outlays in at least 20 years.
What is surprising is just how much or our consumer economy is now dependent on the rich, and how that share has increased as the U.S. emerges from recession. In the third quarter of 1990, the top 5% accounted for 25% of consumer outlays. That held relatively steady until the mid-1990s, when it started inching up past 30%. It dipped in 2003 and again in 2008, but started surging in 2009 amid the greatest bull market rally in history, with the Dow Jones Industrial Average rising nearly 50% in the last nine months of the year.
Answer by pixie_trix at 3:12 PM on Aug. 9, 2010
Answer by LoriKeet at 2:41 PM on Aug. 9, 2010
But our consumption is of all the wrong things. It's a vicious cycle, so many have limited to dollars, so they are stuck purchasing the cheap foreign made crap that places like WM push and that action perpetuates the cycle. The crap is cheap and needs to be replaced, all of the time, and the consumer still has no money or job(WM sent it to China), so the American buys more. There's going to be hell to pay when Americans can no longer purchase the cheap crap-and it's coming. I will not touch the dietary issues.
Answer by Sisteract at 2:58 PM on Aug. 9, 2010
Answer by Sisteract at 2:40 PM on Aug. 9, 2010
Answer by pixie_trix at 2:41 PM on Aug. 9, 2010
Answer by sherribeare at 2:46 PM on Aug. 9, 2010
Answer by yourspecialkid at 4:06 PM on Aug. 9, 2010
Answer by thelowlander at 5:59 PM on Aug. 9, 2010
Answer by urkiddingright at 2:35 PM on Aug. 9, 2010
Answer by sherribeare at 2:47 PM on Aug. 9, 2010