When the economy is in a slump, our business is up. One intriguing paradox is that Americans are being encouraged to spend at the same time fewer Americans are saving. Seventy-four percent of Americans are in debt. Analysts acknowledge the paradox. The goal is to help people with few assets move into the mainstream by building wealth, saving for a house, paying a mortgage and building equity.
More affluent consumers have less to lose, because they have had more disposable income to spend.
Even so, affluent baby boomers are not getting off too easy. A feeling of wealth from investments in a high-rising stock market fueled much spending in the last 10 years. Many boomers substituted the stock market for a savings plan, counting on huge gains to help finance their approaching retirements. But since the stock market has fallen, some boomers are looking to replenish retirement nest eggs by spending less. House sales have slowed.