There’s a growing split between the “have” and the “have-less” classes in America. This split is affecting how middle—and lower-income Americans spend and how they feel about the economy overall. As some experts note, we’re looking at a “two-speed” economy in which rich Americans spend lavishly while those with less means begin to cut back.
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“Things that lower-income consumers need to buy, like food, gas, rent, all those things are up a lot from where they were just a few years ago,” Mark Zandi, the chief economist at Moody’s Analytics, told Observer. “Rent and food are up 20 percent to 25 percent from three years ago. These are things that lower-income households have to buy, and they don’t have a whole lot of financial resources to buy them. So the combination of paying more for things and not having a whole lot of savings makes for a tough financial situation.”
Americans with lower incomes are starting to feel the pressure, as recent data shows that auto and........