Wealthy cut spending- oops

Here is a headline from the New York Times: Wealthy Reduce Buying in a Blow to the Recovery

The report defines upper income consumers as those earning $90,000 a year or more.

“One of the reasons that the recovery has lost momentum is that high-end consumers have become more jittery and more cautious,” said Mark Zandi, chief economist for Moody’s Analytics.”

“But the Top 5 percent in income earners — those households earning $210,000 or more — account for about one-third of consumer outlays, including spending on goods and services, interest payments on consumer debt and cash gifts, according to an analysis of Federal Reserve data by Moody’s Analytics. That means the purchasing decisions of the rich have an outsize effect on economic data. According to Gallup, spending by upper-income consumers — defined as those earning $90,000 or more — surged to an average of $145 a day in May, up 33 percent from a year earlier.”

The solution to this problem is clear, raise taxes on these folks and further inhibit their spending power.  Hey, if they aren’t paying their “fair share” of taxes, they better be spending their fair share for the sake of the economy.
[picapp align=”none” wrap=”false” link=”term=barney+frank&iid=8584226″ src=”http://view.picapp.com/pictures.photo/image/8584226/geithner-bernanke-and-fuld/geithner-bernanke-and-fuld.jpg?size=500&imageId=8584226″ width=”380″ height=”253″ /]                                                                                                                                                                                                     How do I define fair share?  Could you rephrase that questions?

Do you think Barney Frank and the House leaders will take me seriously? Is spending by government more important to a lasting economic recovery then spending by consumers, apparently many in Congress think so.