Why don't the top 5% spend more and lift the economy?

Discussion in 'Economics' started by WaveStrider, Sep 16, 2008.

  1. Isn't that how it's supposed to work?

    This is when they should be hiring more.

    Like one guy said on tv "I've never been hired by a poor man."

    RIGHT! Bush Economics 101!

    So...where are they...?

  2. I'd say right about now they're cleaning out their desks!
    You're right, times like this kinda kill that whole trickle down nonsense don't they??? Maybe we should have a nice discussion of privatizing social security now. Bet that would work out well.
  3. Laughing at the other 95% and taking pleasure in their misery.

    Too many people assume that the top 5% are benevolent human beings. Nothing could be further from the truth.

    Have you ever read some of the papers put out by the think tanks which these 5% fund & support? Scary stuff.
  4. Mvic


    95%-99% is about 100K-300K on the income distribution graph and my guess is that those folks are hurting too if small business owners or else worried about their jobs so probably cutting back on discrectionary purchases and large purchases.

    Interestingly for Obama rich in terms of annual income starts at 250K for McCain rich starts at 5M.

    One thing to keep in mind is that expenses usually track income and doesn't start to diverge until well over $1M.
  5. True. When I first started in the financial industry, I went to the College of Financial Planning. Then as a "CFP", I counseled people on their finances and investments.

    Initially I had the notion that if I "made $100K", that would be nirvana. But as I met with clients, I found $100K was nothing. Most who had that income couldn't put $10 grand together... they had a bit better house and car... took a better vacation and paid for better schools for their kids... but they had virtually no money.... the greater tax bite consumed the rest.

    So I thought, "magic number must be $250K".... guess what... SAME THING, mostly. I remember hearing a woman say, "just because my husband is a doctor and makes $250k per year, our friends think we have money".
  6. gnome, good point. Income is relative.

    Money management is most important.

    I am an income generator personality, I am semi clueless re money, of course I'd never would admit that to anyone and although I just did, I'll deny it if anyone repeats it. {:>).

    My wife is the money manager
  7. vv111y


    So very true.

    So how much more over $1mil does this divergence start to show up?
  8. Chood


    Confirming their reservations on the Dick Cheney charter to Dubai, to make sure they arrive there no later than their money.
  9. I don't really know. But the key for most of us is to "live below our means and invest our savings"....

    Figure someone with $1Million income is going to have about $500K left after taxes..

    So, live on $25k/mo. so one can invest $200K per year?
  10. Traber


    good thread here. thanks for the info
    #10     Sep 16, 2008