Affluent Holding Onto Credit Cards More?
Apparently this slumping economy, or so everyone is saying, has affected not only the working, blue collar class here in the US, but also is affecting the more affluent spenders, which make up a smaller portion of the population here in the US, but also who are the bigger spenders and who contribute greatly to those that are in the working class with their patronage and spending, including gratuities and other spending habits that benefit not only the rich buyer, but also the less rich who are receiving the tips, money and business.
Many businesses that cater to the upper class say they’ve noticed the crunch a bit more as of late as even the more affluent spenders have been holding onto their credit cards a little tighter in anticipation of a worsening economy as well as a possible recession, if we’re not already smack dab in the middle of one now.
As far as the working class who depends on tips, I can say that I definitely felt the crunch when I was waiting tables as a college student when economic times weren’t so great, so I can definitely appreciate this type of news story! With increased gas prices (there are some of the best gas credit card deals going on right now by the way, which can help offset the effects of this sort of economy and high gas prices), we again see another fan on the fire.
Economists report that cutbacks by the richer class always have a sort of domino effect on the population, because when they cut back, the middle class that relies on their spending cuts back, and that cutback affects the working poor class, and so on and so forth, until you have every income class affected by the economy being weak. Isn’t this what a weak economy is, in essence though?
I mean, unless you are directly affected by a business closing it’s doors via a layoff, there is really no reason to cut back on your spending now, and I think that precise mentality has caused this spending cutback in the first place, so it all plays into the weakened economy, and it’s all one common factor that causes reduced spending in any class : Fear!
