An obvious concern is high inflation
to pass President Joe Biden’s “Build Back Better” programme will lead to further retrenchment.
That matters in trying to assess the potential impact of excess savings. The wealthy typically spend a low share of their incomes. The extra cash sitting in their hands is more likely to go towards investment accounts than grocery purchases. A final concern is high inflation. That eats into both wealth and incomes. Adjusted for rising prices, wage growth in America has turned sharply negative over the past half-year. Similarly, the real value of savings looks a bit less impressive given the reduction in purchasing power.
This may already be happening. Consumer borrowing soared in November by $40bn, the most on record, as credit-card usage soared. Some observers saw that as a sign that households were strapped for cash. Alex Lin of Bank of America disagrees. “An increase in credit-card spending can be a function of greater re-engagement in the economy,” he says. “Americans like to use their credit cards to rack up points for travel or restaurants, and that is not necessarily a sign of danger.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wine fridge smuggled into No10 that staff kept stocked from Tesco Express dashesStaff attending regular 'wine-time Fridays' throughout the pandemic invested in the £142 chiller to keep their bottles of white wine, Prosecco and beer cool
Read more »
Covid: Voter anger over lockdown parties, and is pandemic entering its endgame?➡️ Voter anger over lockdown parties ➡️ Is pandemic entering its endgame? ➡️ Call to follow Sheen's lead to save charities Five things you need to know about the pandemic this morning
Read more »
Covid-19: Week of thanks to Bristol NHS staff beginsPeople are sending personalised messages to hospital staff for their efforts during the pandemic.
Read more »
Shooting film Boiling Point in a single take was ‘zen’, Stephen Graham saysThe pandemic cut down the film's number of takes.
Read more »
What do we know about the 175,000 people who died of Covid in the UK?How the pandemic has affected people based on age, gender, vaccination status and ethnicity
Read more »
Glenn Youngkin bans critical race theory on day one as Virginia governorNewly elected Republican unveils sweeping conservative orders, including loosening public health mandates during the pandemic
Read more »