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The Middle Class Is Steadily Eroding. Just Ask the Business World.


Stashed in: America!, Economics

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People who make more money tend to spend more money:

In 2012, the top 5 percent of earners were responsible for 38 percent of domestic consumption, up from 28 percent in 1995, the researchers found.

Even more striking, the current recovery has been driven almost entirely by the upper crust, according to Mr. Fazzari and Mr. Cynamon. Since 2009, the year the recession ended, inflation-adjusted spending by this top echelon has risen 17 percent, compared with just 1 percent among the bottom 95 percent.

So there's no real incentive for the powers that be to change things?

Not until total consumption goes down, which will take the stock market with it.

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