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Friday, April 14, 2023

The Daily Money: Rich Americans are on a spending spree. It may help the US avoid a recession.

The rich are still splurging, a trend that could help the U.S. dodge a recession since consumer spending makes up 70% of economic activity.
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The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Fri Apr 14 2023

 

Bailey Schulz Money Reporter

@bailey_schulz

It's Bailey Schulz here to bring you Friday's top headlines. 

Americans have been tightening their spending to deal with high inflation and interest rates.

But not everyone is pulling back.

Data show the affluent are still splurging, with the top 10% of Americans based on income accounting for 45.5% of consumer spending in the fourth quarter, up from 44% in the third quarter. Spending by that group was up 3.8% during the last three months of 2022, compared to a 1.3% jump for the bottom 80%. 

The trend could bode well for the U.S. economy, bolstering hopes that the U.S. can dodge a recession since consumer spending makes up 70% of economic activity. 

"They are a critical part of any optimism that the economy can manage through this without going into a recession," said Mark Zandi, chief economist of Moody's Analytics.

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People stand outside the Dolce & Gabbana store on Fifth Avenue, Nov. 21, 2021, in New York.

Pamela Hassell, AP

More wives are breadwinners. Why are they still doing the laundry?

Many wives are earning just as much as their husbands in more marriages today. So why are they still doing more housework?

In marriages where both spouses earn 40% to 50% of the couple's combined earnings, husbands spend about 3.5 hours more a week socializing and relaxing compared with their wives, according to a new study from the Pew Research Center.

Wives in these marriages spend roughly 2 hours more per week on caregiving than their husbands and 2.5 hours more on housework. 

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About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.

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