Originally Posted by Dan Daniel
Just to be clear, and for those outside of the US, this is true for maybe the top 10% of the country. Most of the rest, this is either delusional dreams ("temporarily embarrassed millionaires") or simply has no relation to their lives. The economy continues to bifurcate at a rapid pace. I think even Veblen would be shocked.
Your point is well taken.
About half the population in the U.S. by one report today owns no stock, so for about half the country there is no wealth effect.
While in the top 10% the incomes are high, depending on which city you live in, you might not be able to afford buying a home due to the costs of living.
Overall though I use the top 20% of incomes as a gauge of wealth, because household incomes at this level generally have more income than they need, can max out their 401K's and save, and have disposable income to buy luxury goods.
One Money Manager calls the top 20% "the Protected Class."
"A rising tide does not raise all ships," as they say.