Wealthy people in the US are known for their lavish lifestyle, and spending enormous amounts of money on buying materialistic thighs. However, since the lockdown happened, this group of people saves money and not spending any money on buying things. A study done by researchers based upon the spending done by the use of credit cards shows us that wealthy people are spending less even after lockdown has lifted. People who belong in lower-income order have seemed to have increased their spending after a lockdown was lifted. Such less spending from wealthy people creates a problem in the economy of the country, and economists are worried about it.
Since the time unemployment benefits have been given to all lower-income people, their spending has increased enormously. However, the same thing did not happen with vibrant people because their spending on buying things has remained quite low. Consumer spending is the backbone of any economy; less spending from the wealthiest people will create problems. Two-thirds of consumer spending comes only from wealthy people. If they stopped spending less money even after the quarantine ended, then it will create further problems in the country’s economy.
Poor people who got the unemployment benefits from the government seemed to have increased their spending right after reopening was done by the government. Wealthy people have lost most of their learning resources. Now it is impacting spending money in restaurants, shopping, etc. restaurants and their businesses that got the hit most during a pandemic are getting on track again slowly. However, those who are not on a paycheck to paycheck are now afraid to spend more money than they have. Till all things get to normal, we might not be able to see everyone living like usual and spending money in the market.