3 ms·
I'm not sure that's true in whole though. I think it's more that the wealthy are more hit by the sort of things you can't do right now. I know I'm saving money
by noirbot 6y ago
I'm not sure that's true in whole though. I think it's more that the wealthy are more hit by the sort of things you can't do right now. I know I'm saving money by not taking much/any vacation this year, since flying is unsafe, and there's less to do on a trip since things are closed.
The wealthy have more leisure and discretionary expenses that they can no longer spend on safely, or choose not to because even if they don't NEED to save money right now, they may feel like they should.
For people in the low income bracket, a small increase in income will necessarily cause more spending because there's likely many things they've been putting off buying/doing.
Finally, it's worth noting that percentile changes isn't really apples to oranges here. The folks who were in the high-income bracket were probably spending much more beforehand, so if you're just looking to cause more cashflow in the economy at large, it's not clear that having low-income people spending a bit more would get you as much spending in total as if you did something to cause the high-income group to spend more. And that's before you consider what sectors that spending is in. The businesses that most need stimulus right now seem to me to be the sort that high-income people are more likely to spend on (local small businesses, entertainment, travel). Your local grocery store or chain fast food is probably doing fine, relatively.