Back in the day of the British Empire with its class structure there was an old saying “the rich do what they want, and the poor must bear what they can”. It seems that America is moving more and more toward that situation. A free market economy, like America, creates a growing economy but concentrates wealth in the highest segment of society. Ultimately a portion of that wealth gets invested in more speculative assets while the lower classes don’t have enough income or credit to consume all the goods and services that are produced. This then leads to a down business cycle.
Presently there is an increase in demand for luxury goods for the wealthy while at the same time a flattening of demand for products consumed by middle and lower classes, such as fast food providers. In order to attempt to maintain a growing economy debt is at an all time high from governmental debt, credit card debt and now buy now pay later schemes.
In the practice of street economics, this would be a train where you would move to the back car in case the front part hits an obstacle on the tracks.
