Posts Tagged ‘Saving’

How the rich are getting richer

November 17, 2014

US-BLS-Income-Expenditures-by-income-groupChart from Wolf Street.

This chart gives an indication as to why the U.S. economy is dragging and why income is flowing upward.

Over the eight years ending in 2012, Americans with incomes of $150,000 a year and up spent, as a group, roughly the same amount of money that Americans with incomes of less than $30,000 a year spent, as a group.

But the spending of the $150,000-plus group was well under their total income, so they were able to save and add to their total wealth.  The spending of the $30,000-minus group was above their income, and had to be supporting by borrowing.  That’s why the upper brackets generally get richer, and the lower brackets seldom do.