Rich Americans are spending more money. This strong spending may keep the economy growing for another year.
Many people wonder why Americans still spend money even with high prices. A big reason is that wealthy people have more money now from their jobs, homes, and investments.
Federal Reserve research shows a change since the pandemic. Now, rich people drive most of the spending. Lower-income families struggle more with high costs for housing and food. They have less money to spend on things like electronics, entertainment, and dining out.
Even if lower-income spending is slowly rising, they are still far behind. They have not fully recovered financially. This gap between rich and poor makes some people feel worried about the economy. However, many rich buyers keep spending, helping the economy stay strong.
In September, retail sales in the U.S. increased by 0.4%. Restaurant sales also grew. This shows people are still confident enough to spend money. Many rich households feel secure because their home values and stocks have risen a lot since the pandemic.
Overall, experts believe spending will continue to grow as more people regain their purchasing power.
Vocabulary List:
- Economy /ɪˈkɒn.ə.mi/ (noun): The system by which goods and services are produced sold and bought.
- Spending /ˈspɛndɪŋ/ (noun): The action of using money to purchase goods and services.
- Confidence /ˈkɒn.fɪ.dəns/ (noun): The feeling or belief that one can have faith in or rely on someone or something.
- Purchasing /ˈpɜːr.tʃə.sɪŋ/ (verb): The act of buying something.
- Investment /ɪnˈvɛs.tɪt/ (noun): The action or process of investing money for profit.
- Struggle /ˈstrʌɡ.əl/ (verb): To make forceful or violent efforts to get free of restraint or resist attack.
How much do you know?
What is a big reason why Americans are still spending money even with high prices?
According to Federal Reserve research, who drives most of the current spending in the economy?
Which income group is struggling more with high costs for housing and food?
What do many rich households feel secure about regarding their finances since the pandemic?
Why are lower-income families still behind in their financial recovery?
What factor makes some people worried about the economy despite strong spending from the wealthy?
Rich Americans are spending less money currently due to high prices.
Lower-income families have fully recovered financially from the pandemic.
The gap between rich and poor in spending causes concerns for some individuals regarding the economy.
Retail sales in the U.S. decreased in September.
Many rich households feel insecure about their financial situation.
Experts predict that spending will decrease as more people regain their purchasing power.
Lower-income families struggle more with high costs for housing and food, causing them to have less money to spend on things like electronics, entertainment, and dining out. However, their spending has been slowly rising, but they are still far behind and have not fully recovered financially from the pandemic. This financial between rich and poor is a cause for concern for some people regarding the economy.
In September, retail sales in the U.S. increased by %, showing that people are still confident enough to spend money.
Many rich households feel secure because their home values and stocks have risen a lot since the .
Overall, experts believe spending will continue to grow as more people regain their power.
Federal Reserve research reveals that now, rich people drive most of the spending, while lower-income families struggle more with high costs for housing and food. This financial makes some people worried about the economy.
Many people wonder why Americans still spend money even with high prices, and a significant reason is that wealthy individuals have more money from their jobs, homes, and .
