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.
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