Jan
16
Goldman Says Rich People Will Drag Down the U.S. Economy by Spending Less
By-
Wealth effect could hurt GDP growth by 0.5 ppt, economist says
- Spending on jewelry, pleasure boats strongly tied to market
The stock-market sell-off is going to be a significant drag on the U.S. economy this year as wealthy households feel its impact, according to Goldman Sachs Group Inc.
Lower equity prices could take half a percentage point off U.S. gross-domestic product growth in 2019, with overall tighter financial conditions restricting expansion by around 1 percentage point, Goldman economist Daan Struyven wrote in a note Tuesday. In October, he had said the positive wealth effect from equity gains in 2017 and early 2018 had likely evaporated…
Goldman Says Rich People Will Drag Down the U.S. Economy by Spending Less
