The Wealth Effect of the Stock Market on Consumer Spending

Reported about 21 hours ago

This article explores how the concentration of stock ownership among wealthy Americans significantly impacts consumer spending in the U.S. It highlights that the top 20% of income earners control the majority of stocks and notes that the wealth effect, where rising stock prices increase confidence and spending among these top earners, is crucial for the economy. A decline in stock values may lead to reduced consumer confidence and spending, particularly as the highest earners account for half of all consumer spending.

Source: YAHOO

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