But economists say that recent signs of cutting back by the affluent could hurt the economy and deliver even more pain to lower-income workers, who are dependent on their business and fat tips.
For example, Nathan Warren has seen his monthly wages drop to $1,800 when his work as a limo driver was cut from five days to three. “I have to struggle to get by. I am pinching pennies,” said Warren, 30, a Costa Mesa, Calif. resident. “I am eating more cereal and am not buying clothing.”
Didn’t the media deride this as “trickle-down economics” when Ronald Reagan argued this theory? Somehow, I doubt they’ll give him credit for his concern for the poor.