A destitute man sleeps on the sidewalk under a holiday window at Blanc de Chine in New York. The growing gap between the richest Americans and everyone else isn’t bad just for individuals it’s hurting the U.S. economy says a majority of more than three dozen economists surveyed in December 2013 by The Associated Press.WASHINGTON – The growing gap between the richest Americans and everyone else isn’t bad just for individuals.
It’s hurting the U.S. economy.
So says a majority of more than three dozen economists surveyed last week by The Associated Press. Their concerns tap into a debate that’s intensified as middle-class pay has stagnated while wealthier households have thrived.
A key source of the economists’ concern: Higher pay and outsize stock market gains are flowing mainly to affluent Americans. Yet these households spend less of their money than do low- and middle-income consumers who make up most of the population but whose pay is barely rising.
“What you want is a broader spending base,” says Scott Brown, chief economist at Raymond James, a financial advisory firm. “You want more people spending money.”