Bloomberg Business reports HENRYs aren't spending enough to support the economy. Who, you may well ask, is a HENRY? It's the acronym for
High
Earners
Not
Rich
Yet; people earning between $100,000 and $249,999 per year.
“The caution of high-income consumers is key to the lackluster retailing environment” because the top 20 percent of households make up more than half of total spending, said Mark Zandi, chief economist of Moody’s Analytics Inc. in New York.
There is apparently much wailing and gnashing of teeth at firms like Coach and Ralph Lauren, one supposes at Tiffany & Co., too. Cautious spending by high earners is characterized thus:
That’s smart for them, but it’s certainly not good for the economy.
It is an echo of what we said about Greek bank depositors.
