Richest 25% of Americans Cut Spending the Most During Pandemic
- More than 65% of low-wage earners in affluent areas lost jobs
- Low-income households reduced their spending by only 4%
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The richest quarter of Americans cut their consumer spending more than any other income group during the height of the pandemic, according to a study by a group of Harvard University researchers.
As a result of high-income earners sharply reducing their expenditures, the revenues of businesses that cater to affluent households suffered, the study from Opportunity Insights, a Harvard research group led by Raj Chetty, John Friedman and Nathaniel Hendren, found. In turn, small businesses in wealthier regions laid off 65% of their low-wage earners, while in the lowest-rent areas, fewer than 30% lost their jobs.