How Stock Market ‘Wealth Effect’ Could Slow
the Economy
Market jitters over trade could damage more than your
retirement fund balance. When investors feel less wealthy, they may also choose
to spend less.
The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending?
https://www.bloomberg.com/news/articles/2025-03-24/rich-americans-cutting-spending-could-hurt-the-us-economy
The stock market slide threatens a wealth effect that’s been a key driver of the post-pandemic expansion.
Americans Feel Bad About the Economy. Whether They Act on It Is What Really Matters.
https://www.wsj.com/economy/consumers/trump-economy-consumer-business-sentiment-fbfb1db5
When consumers and businesses are feeling down, the effects can ripple through the economy—sometimes.
Slumping Stocks Threaten a Pillar of the Economy: Spending by the Wealthy
https://www.wsj.com/economy/slumping-stocks-threaten-a-pillar-of-the-economy-spending-by-the-wealthy-c23cabd4
Consumer spending is highly dependent on the affluent, who are highly dependent on the stock market.
The U.S. Economy Depends More Than Ever on Rich People
https://www.wsj.com/economy/consumers/us-economy-strength-rich-spending-2c34a571
The highest-earning 10% of Americans account for almost 50% of all consumer spending.
https://www.bloomberg.com/news/articles/2025-03-24/rich-americans-cutting-spending-could-hurt-the-us-economy
The stock market slide threatens a wealth effect that’s been a key driver of the post-pandemic expansion.
https://www.wsj.com/economy/consumers/trump-economy-consumer-business-sentiment-fbfb1db5
When consumers and businesses are feeling down, the effects can ripple through the economy—sometimes.
Slumping Stocks Threaten a Pillar of the Economy: Spending by the Wealthy
https://www.wsj.com/economy/slumping-stocks-threaten-a-pillar-of-the-economy-spending-by-the-wealthy-c23cabd4
Consumer spending is highly dependent on the affluent, who are highly dependent on the stock market.
The U.S. Economy Depends More Than Ever on Rich People
https://www.wsj.com/economy/consumers/us-economy-strength-rich-spending-2c34a571
The highest-earning 10% of Americans account for almost 50% of all consumer spending.
Related:
Consumer Angst Is Striking All Income Levels
https://www.wsj.com/economy/consumers/consumer-angst-is-striking-all-income-levels-ab32d5d5
Signs of weakness are showing up in spending on everything from basics to luxuries.
Consumers Keep Bailing Out the Economy. Now They Might Be Maxed Out.
https://www.wsj.com/economy/consumers/consumer-credit-debt-economy-impact-634eda8d
Recession fears rekindle concerns that Americans are overstretched on debt.
https://www.wsj.com/economy/consumers/consumer-angst-is-striking-all-income-levels-ab32d5d5
Signs of weakness are showing up in spending on everything from basics to luxuries.
Consumers Keep Bailing Out the Economy. Now They Might Be Maxed Out.
https://www.wsj.com/economy/consumers/consumer-credit-debt-economy-impact-634eda8d
Recession fears rekindle concerns that Americans are overstretched on debt.