11 Jan The fat cats getting fatter
Image by me on Canva.
A tale as old as time.
The rich get richer, the poor get poorer, and the folks in the middle get the squeeze.
Wow. So in the midst of Wall Street and Big Tech layoffs, you can get a six-figure job with a $30K budget to eat in NYC’s restaurants and prepare reviews.
The wealthy are still spending money on whatever they want – cars, fashion, jewelry, etc.
I feel like I’ve seen this movie before . . .
Oh wait! I have.
“There is a telling detail in the US retail chain store data for December. Stephen Lewis from Monument Securities points out that luxury outlets saw an 8.1pc rise from a year ago, but discount stores catering to America’s poorer half rose just 1.2pc.
Tiffany’s, Nordstrom, and Saks Fifth Avenue are booming. Sales of Cadillac cars have jumped 35pc, while Porsche’s US sales are up 29pc.
Cartier and Louis Vuitton have helped boost the luxury goods stock index by almost 50pc since October. Yet Best Buy, Target, and Walmart have languished.
Such is the blighted fruit of Federal Reserve policy. The Fed no longer even denies that the purpose of its latest blast of bond purchases, or QE2, is to drive up Wall Street, perhaps because it has so signally failed to achieve its other purpose of driving down borrowing costs.
Yet surely Ben Bernanke’s ‘trickle down’ strategy risks corroding America’s ethic of solidarity long before it does much to help America’s poor.” -The Telegraph, published Jan 9, 2011
Well hey. As long as the wealth goes to Wall Street first and then magically trickles down to the common folk, I guess we’ll all be alright. Right?
You can find my newest books on Amazon:
Will You Survive a Job Market Crash?: Easy Tools & Strategies You Can Use in an Economic Crisis
The Better Hiring Series