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K shaped economy with increasing expenditure means the wealthier increase their spending as a portion of the economy and at an absolute level. It is not interpr
by tomrod 11mo ago
K shaped economy with increasing expenditure means the wealthier increase their spending as a portion of the economy and at an absolute level. It is not interpreted as the polity doing well - if anything, it is cause for concern.
- Ericson2314 11mo agoThe wealthy don't buy more crap on black Friday. Inequality is very visible in terms of what sort of consumption occurs. Gotta look at the qualitatives.
- alfalfasprout 11mo agoSure they do. And during the holiday season too.
- zerosizedweasle 11mo agoWealthy people love feeling like they are getting a deal.
- Ericson2314 11mo agoI would not expect wealthy people to be more price sensitive over all.
- Libidinalecon 11mo agoI don't know if it is just the wealthy either. The retired middle class boomers I know are completely outside the business cycle. While I don't think they have enough to really be considered wealthy, they have no mortgage payment, a social security check, a pension and most have a 401k. The business cycle will not change their spending one bit.
- AnimalMuppet 11mo agoIt may, a bit. If the 401k is in the stock market, and the stock market is down, their total visible money is down. That tends to decrease enthusiasm for spending.
- bryanlarsen 11mo agoIt may also affect it a lot. Retirees I know have a retirement plan that involves their retirement accounts being at a specific level at the end of each year. If their accounts are over that level because the stock market had a good year, they consider it funny money that they're allowed to spend.