> The Working Class will feel almost nothing from any stock market crash
That's not the case - if the top 50/10/1% of households loose a chunk of their wealth they'll spend less which will have an impact on the entire economy.
The US is already meant to be in a 'k-shaped' economy where 10% of income earners account for nearly 50% of all consumer spending - if the top 10% cut back its going to be at the expense of jobs of the bottom 90%.
> We calculate that a fall in stocks comparable to the dotcom bust would reduce American households’ net worth by 8%. That could cause a big retrenchment in consumer spending. By one rule of thumb, the pullback would amount to 1.6% of GDP—enough to push America, where the labour market is already suffering, into a recession
That's not the case - if the top 50/10/1% of households loose a chunk of their wealth they'll spend less which will have an impact on the entire economy.
The US is already meant to be in a 'k-shaped' economy where 10% of income earners account for nearly 50% of all consumer spending - if the top 10% cut back its going to be at the expense of jobs of the bottom 90%.
> We calculate that a fall in stocks comparable to the dotcom bust would reduce American households’ net worth by 8%. That could cause a big retrenchment in consumer spending. By one rule of thumb, the pullback would amount to 1.6% of GDP—enough to push America, where the labour market is already suffering, into a recession