Sticky inflation, white-collar layoffs, and surging rates of interest are all placing stress on a sure kind of American — higher-income earners.
“What we usually see in an financial recession is that lower- and moderate-income households actually bear the brunt of it by way of job losses and monetary hardships,” stated Greg McBride, senior monetary analyst at Bankrate.com. “We have not seen that.”
The inventory market, a supply of wealth for the wealthy, struggled in 2022. The S&P 500 sank greater than 19%. The similar yr, 1.8 million Americans misplaced their millionaire standing, in response to UBS’ 2023 Global Wealth Survey. Despite the inventory market’s summer time rally in 2023, the U.S. economic system nonetheless faces a number of headwinds.
Bank of America’s Consumer Checkpoint Survey for September 2023 discovered that high-income households have grow to be extra pessimistic about the economic system. The similar group additionally seems extra cautious about spending due to tender wage development and slowing job creation for excessive earners.
Watch the video above to seek out out extra about how the so-called “richcession” may have an effect on the whole economic system.