Get this. It’s unbelievable… especially from the Associated Press.
“Luxury Squeeze — It’s hard to feel sorry for well-heeled shoppers whose idea of tough economic times is passing on $1,000 Burberry raincoats or that $300 limo ride while the working poor skimp on vegetables and take the bus. But economists say that recent signs of cutting back by the affluent could hurt the US economy and deliver even more pain to lower-income workers, who are dependent on their business and fat tips. Nathan Warren, a limo driver, knows this firsthand: He has seen his monthly wages drop by 40 percent to about $1,800 since late last year. His work week at Classy Ride Limousine Service was reduced to three days from five amid slow business. ‘I have to struggle to get by. I am pinching pennies,’ said Warren, 30, a Costa Mesa, Calif. resident. ‘I am eating more cereal and am not buying clothing.’ Cutbacks by the wealthy have a ripple effect across all consumer spending, said Michael Niemira, chief economist at the International Council of Shopping Centers. That’s because American households in the top 20 percent by income — those making at least $150,000 a year — account for about 40 percent of overall consumer spending, which makes up two-thirds of economic activity.”
Why? Why?
Wait, wait, wait! Ripple effect?
You mean when the affluent and wealthy stop buying, it hurts people lower down the scale?
Uh, so you got… Follow me on this here, folks.
You got the wealthy and you got the affluent up here, and they spend, and when they spend, that spending sort of “trickles down” to others below them. Uh, so there is a trickle-down effect?
A trickle-down effect!
So when you give tax relief, tax cuts to upper income workers, they spend more, and there’s a trickle-down effect? Does this woman who wrote this, Anne Dinnocenzio, want to keep her job? She has just done a story under the guise of feeling sorry for the poor and the middle class that they’re having to eat cereal and go without new clothes — and she just validated Reaganomics, the trickle-down aspect.
So, the rich can’t win. If they make too much money, it’s not fair. If they don’t spend what they make, everybody suffers (Women and Minorities Hardest Hit). This needs to be framed and put in the Smithsonian.
This is incredible.
“Recent signs of cutting back by the affluent could hurt the economy and deliver even more pain to lower income workers who are dependent on their business. The limo driver is just but one example.”
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