Rich Americans may not be able to power the economy through a slowdown after all.
A lot of economic punditry recently has been focused on high earners as a pillar of continued consumer strength, with their robust spending helping to prop up economic growth.
But there are a few reasons why that might not be true, analysts at BCA Research said, particularly when surveying other signs of weakness in the economy,
The firm pointed to the slowdown in hiring as a particular area of weakness.
BCA thinks job gains in the economy are now approaching “stall speed,” a level that suggests a slowdown in job creation could lead to a broader economic slowdown.
“‘Now that the top 10% of earners account for 50% of consumption, do nonfarm payrolls matter less than they used to? If stocks keep rising, boosting high-end households’ wealth and confidence, can they spend enough…
