Data: Morning Consult/Axios Inequality Index; Diagram: Kavya Beheraj/Axios
Although they still have plenty of cash from the booming market, wealthier people are becoming increasingly concerned about the economy, particularly inflation.
What’s happening: In March, consumer confidence fell 7.2% for those making more than $100,000 — a much larger drop than for those making less than $50,000, according to a consumer sentiment gauge released today as part of the Morning Consult/Axios Inequality Index.
Why it matters: On average, high earners still feel better about the economy, but have more to lose from declining financial markets. The mix of volatile asset prices, US Federal Reserve rate hikes and rising inflation are weighing on their confidence.
Between the lines: Financial investments have been particularly volatile since the beginning of the year.
- Wealthy people are more likely to get hooked on financial news and check their $401,000 balances, said Jesse Wheeler, an economic analyst at Morning Consult.
- They are also usually older and may remember experiencing inflation decades ago. “Young people don’t know, and they will soon find out.”
Remarkable: Wage growth was highest among low-wage workers, leaving many high-wage workers with inflation-adjusted pay falling.
Reality check: Rich people may be more stressed, but lower-income Americans are much more concerned about rising prices. They tend to have less financial cushion to handle higher prices for groceries, gas, and other necessities.
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