The Associated Press has reported that Americans\u2019 wealth declined this spring for the first time in a year, as stocks and home values fell. At the same time, corporations increased the size of their cash stockpiles.<\/p>\n
According to the Federal Reserve\u2019s Flow of Funds report, household net worth dropped 0.3 percent to $58.5 trillion in the April-June quarter.\u00a0 Corporations, on the other hand, held a record $2 trillion in cash at the end of June, an increase of 4.5 percent from the January-March quarter.<\/p>\n
As the AP concludes:\u00a0 When people feel poorer, they spend less. That slows growth. Businesses then respond by cutting back on hiring and expansion plans. It can become a cycle.<\/p>\n
Pretty simple.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" The Associated Press has reported that Americans\u2019 wealth declined this spring for the first time in a year, as stocks and home values fell. At the same time, corporations increased the size of their cash stockpiles. According to the Federal … Continue reading