"Cutbacks by the wealthy have a ripple effect across all consumer spending, said Michael P. Niemira, chief economist at the International Council of Shopping Centers. That's because American households in the top 20 percent by income -- those making at least $150,000 a year -- account for about 40 percent of overall consumer spending, which makes up two-thirds of economic activity.
http://news.moneycentral.msn.com/tic...079&Symbol=TIF
Maybe Reagan and his top economic advisor David Stockman, a graduate of my high school, were on to something when they proposed that economic issues that affect the wealthy "trickle-down" to middle and lower class families.
In this article by the AP, we see that wealthy Americans do indeed carry the economy.
"The economy needs affluent shoppers to spend with enthusiasm. According to the government's latest survey of consumer expenditures, the top 20 percent of households spend about $94,000 annually, almost five times the bottom 20 percent and more per year than the bottom sixty percent combined."
This is not to say that wealthy people are better or more important than lower income folks, but it shows that if the government makes it harder for the wealthy to have and spend money (higher taxes, etc), times will be even tougher on the lower income folks.
Maybe Reagan (and Stockman) was on to something... 
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