flushlife.com flush: adj. having an abundant supply of money; affluent

17Sep/091

Wealthy Families Lead the Way to Recovery

dollar-signAdage.com yesterday published an article based on the 2009 Ipsos Mendelsohn survey of the affluent, that indicates that families with income over $100k are planning to continue their previous spending habits, albeit slightly cutting back.

Mr. Shullman said if a recovery is to come, particularly in consumer spending, it will have to come from households making $100,000 or more. They may represent only 20% of U.S. households, but they control more than half of all income and are far less likely than everyone else to be restrained by tight credit markets.

"On average, the affluent are 2.6 times more likely to buy everything, and when they do, they spend 3.7 times more," Mr. Shullman said. "So I feel better looking at [the data] we're seeing now, than I would have three or four months ago."

Now, I don't consider annual household income of $100k wealthy. But I do believe the truly wealthy around the world fuel 99% of the economy. We spend like no one else does for ourselves, our families and friends injecting discretionary income into the global economy. And unless you're a trust fund baby, you probably own or have significant power of influence in companies that create jobs for tens of thousands.

And for our significant contributions to the world economy, we are taxed more than significantly while everyone complains about how we get away with paying no taxes. Taxes collected from the top 1% - the truly wealthy - not only could fund nations' government, they essentially do.

What do you think?

Have you changed your spending habits? Are you seeing signs of "recovery" and spending in a similar manner as before? What are your thoughts on the taxation of the upper echelon of wealthy people?

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  1. I’ve never changed my spending habits one bit. I will, and always have, do what I want when I want.

    Of course I’m upset with the amount of taxation! I strongly support a flat-tax that would not leverage the hard work and genius of a few people to pay for those who don’t want to work and cost the most to support – like almost everyone you see on the TV show COPS. When do you see someone that’s even middle-class on there?


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