Wealthy Americans are spending a lot on shopping and dining out, which is good for the economy. They have more money from higher incomes, home values, and stock market gains. This spending trend is different from before the pandemic. It shows that the economy could stay strong in the next year.
But people with lower incomes are struggling more with high prices for rent and food. They can’t afford to buy as many extra things like electronics or go out to eat as much. It might take them a while to recover financially.
The economy is doing well even though the Federal Reserve has raised interest rates. People keep spending money, especially at stores and restaurants. This means businesses are still making money.
Overall, wealthy people are helping the economy by spending a lot. On the other hand, lower-income households are finding it hard to spend on extra things. But things are looking up for everyone as incomes rise and prices become more stable.
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Vocabulary List:
- Economy /ɪˈkɒn.ə.mi/ (noun): The system of production distribution and consumption of goods and services in a society.
- Struggling /ˈstrʌɡlɪŋ/ (verb): Experiencing difficulty in achieving something.
- Afford /əˈfÉ”Ërd/ (verb): Have enough money to pay for something.
- Income /ˈɪn.kʌm/ (noun): Money received especially on a regular basis for work or through investments.
- Stable /ˈsteɪ.bəl/ (adjective): Not likely to change or fail; firmly established.
- Gains /ɡeɪnz/ (noun): An increase in wealth or resources.
How much do you know?
What are wealthy Americans spending a lot on, according to the text?
What is cited as contributing to the higher spending of wealthy Americans?
What has made it challenging for people with lower incomes to spend on extra things?
What is the economic outlook for the next year, according to the text?
What action did the Federal Reserve take despite the economy doing well?
What is a positive trend mentioned in the text regarding incomes and prices?
Wealthy Americans are not contributing to the economy by their high spending.
People with lower incomes are able to afford extra luxurious items easily.
The Federal Reserve has not raised interest rates despite the strong economy.
The spending trend of wealthy Americans remained unchanged before the pandemic.
Businesses are not making money despite people spending at stores and restaurants.
Incomes are not rising and prices are not becoming more stable according to the text.
People with lower incomes are struggling more with prices for rent and food.
People with lower incomes can't afford to buy extra things like electronics or go out to eat as much.
The Federal Reserve has interest rates, but the economy is still doing well.
Overall, wealthy people are helping the economy by a lot.
Incomes are rising and prices are becoming more for everyone.