rulemylife
Posts: 14614
Joined: 8/23/2004 Status: offline
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quote:
ORIGINAL: Brain The priority seems to be to improve luxury spending. I suppose people can use their tax cut to buy a new yacht. Luxury spending is back in fashion But lag in essentials shows income gap Consumers are buying more luxury items but spending remains tight for everyday essentials such as food and dental care, a USA TODAY analysis finds, suggesting a growing divide between haves and have-nots. Purchases of TVs, jewelry, recreational vehicles and pet supplies are growing robustly, government data show. At the same time, spending on medical care, day care, education is down in the dumps. He says higher-income and older households, helped by a strong stock market, are experiencing increased wealth and spending more. However, high unemployment is pulling in the other direction, depressing spending among people without jobs and those anxious about job security. http://www.usatoday.com/printedition/news/20101027/1aconsumer27_st.art.htm That divide has been growing since Reagan introduced his golden shower economics.
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