Economic & Finance

How the Recession is Impacting the Rich People

Recession impacting rich people

Despite advancing toward a dream economic scenario, some of the country’s rich people might not be too thrilled due to recession.

In spite of the Federal Reserve’s aggressive interest-rate hikes, inflation in the US is cooling toward the Federal Reserve’s 2% target.

According to the Philadelphia Fed, forecasters estimate the US Gross Domestic Product rose 1% last quarter.

There is a different kind of economic slump on the horizon – a “richsession” means “recession impacting the Rich People“.

A Wall Street Journal reporter coined the term to describe a downturn disproportionately affecting the country’s wealthiest.

Elon Musk and Mark Zuckerberg – whose billion-dollar fortunes are soaring due to the AI-fueled stock-market rally – were not being mentioned by Lahart, but rather people who earn more than $25,000 a year. According to the Bureau of Labor Statistics, members in that group earn over $90,000-a-year.

High-paying firms like Meta Platforms and Goldman Sachs cut jobs in an effort to cut costs in the first half of 2023.

In addition, the Atlanta Fed found that wages for the bottom 25% have outpaced those in the top quartile over the past year, while spending on luxury brands has slowed substantially.

In a country where inequality outpaces other rich nations and wealth is disproportionately concentrated in the hands of the top 1%, the “richsession” is likely to be a cause for celebration.

It’s merely a reminder that the economy is slowing down – but not necessarily in the way we expect.

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Editorial Director
I'm Shruti Mishra, Editorial Director @Newsblare Media, growing up in the bustling city of New Delhi, I was always fascinated by the power of words. This love for words and storytelling led me to pursue a career in journalism. In this position, I oversee the editorial team and plan out content strategies for our digital news platform. I am constantly seeking new ways to engage readers with thought-provoking and impactful stories.

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