The Progressives class warfare continues to send ripples across our economy. From CNBC:
[The rich] are also worried about the U.S. economy, the fiscal cliff, government debt and the prospects for their own companies.
“The drops in millionaire confidence are particularly disturbing because generally millionaire households are more positive about economic conditions than others,” said Catherine McBreen of Spectrem. “The biggest concerns for investors when reviewing their own household’s outlook were the economy and company health.”
The paralyzed plutocracy also threatens consumer spending. The top 5 percent of earners account for more than a third of consumer outlays and their spending is highly discretionary and volatile.
Did you catch that last bit? “The top 5 percent of earners account for more than a third of consumer outlays”
If I were rich, I’d probably notice the Government doesn’t seem to know what to do about the economy. I’d probably notice the Government eying my income via taxes and their general hostility toward my business (that I didn’t build). I’d probably notice #Occupy and their 1% class warfare rhetoric. And I’d notice the mainstream media pumping up the volume every day.
And I’d probably make the reasonable decision to minimize exposure, flat-line expenditures and put my money into the safest investments I could find (think Gold). I would strengthen my cash position and virtually get out of the volatile stock market. I sure as hell wouldn’t be out spending my money in the consumer market! So, do the math: If I’m responsible for over 1/3 of consumer outlays, and I’m not spending, what does this portend for the short-term health of the economy? Hmmmm?
But yea, evil rich 1%ers!
What could go wrong?