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I guess the rich are "over taxed"?
Whatever your view, one can say income/wealth distribution continually gets more lopsided leading, in the end, to a Worse economy.
When there aren't enough Middle income/wealth consumers, (to buy TVs, cars, computers, middle/low price houses and all their accompanying needs) even the rich's portfolios and overall economy suffers.
Stocks have done well mostly due to the recovery from the crash and very low rates, but Not much 'top-line' revenue growth.
Million-Dollar Home Sales Thrive While Low End Stumbles
By Prashant Gopal May 2, 2014
Million-Dollar Home Sales Thrive While Low End Stumbles - Bloomberg
Luxury-home sales are climbing as an improving economy and stocks that have almost tripled from 2009 lows bolster confidence among affluent buyers. At the same time, slow wagePhotographer: Emile Wamsteker/Bloomberg
Whatever your view, one can say income/wealth distribution continually gets more lopsided leading, in the end, to a Worse economy.
When there aren't enough Middle income/wealth consumers, (to buy TVs, cars, computers, middle/low price houses and all their accompanying needs) even the rich's portfolios and overall economy suffers.
Stocks have done well mostly due to the recovery from the crash and very low rates, but Not much 'top-line' revenue growth.
Million-Dollar Home Sales Thrive While Low End Stumbles
By Prashant Gopal May 2, 2014
Million-Dollar Home Sales Thrive While Low End Stumbles - Bloomberg
Luxury-home sales are climbing as an improving economy and stocks that have almost tripled from 2009 lows bolster confidence among affluent buyers. At the same time, slow wagePhotographer: Emile Wamsteker/Bloomberg
Million-dollar homes in the U.S. are selling at double their historical average while middle-class property demand stumbles, showing that the housing recovery is mirroring America’s wealth divide.
Purchases costing $1 million or more rose 7.8% in March from a year earlier, according to data released last week by the National Association of Realtors. Transactions for $250,000 or less, which represent almost 2/3 of the market, plunged 12% in the period as house hunters found few available homes in that price range.
Luxury-home sales are climbing as an improving economy and stocks that have almost tripled from 2009 lows bolster confidence among affluent buyers. At the same time, slow wage growth, tight credit standards and escalating prices are putting homeownership out of reach for many Americans. While investors drain the market of lower-end properties, builders are constructing more expensive houses that generate bigger profits.
“The real estate market is the ultimate reflection of confidence, wealth and income,” said Sam Khater, deputy chief economist at Irvine, California-based CoreLogic Inc.
“The same factors driving the income stagnation in the middle are driving the income momentum at the top.”
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