Tech
The Recession Has Finally Begun, But Only For America’s Rich
Sticky inflation, white-collar layoffs, and surging interest rates are all putting pressure on a certain type of American — higher-income earners.
‘What we normally see in an economic recession is that lower- and moderate-income households really bear the brunt of it in terms of job losses and financial hardships,” said Greg McBride, senior financial analyst at Bankrate.com. “We haven’t seen that.”
The stock market, a source of wealth for the rich, struggled in 2022. The S&P 500 sank more than 19%. The same year, 1.8 million Americans lost their millionaire status, according to UBS’ 2023 Global Wealth Survey. Despite the stock market’s summer rally in 2023, the U.S. economy faces several headwinds.
Bank of America’s Consumer Checkpoint Survey for September 2023 found that high-income households have become more pessimistic about the economy. The same group also appears more cautious about spending because of soft wage growth and job creation for high earners.
Watch the video above to find out more about how the so-called “richcession” could affect the entire economy.
Chapters:
0:00 — Introduction
01:30 — How did the ‘richcession’ happen?
02:56 — The wealth effect
05:26 — How is the luxury consumer holding up?
07:00 — The return of the millionaires?
Produced by: DeLon Thornton
Edited by: Evan Miller
Additional Camera: Kate Sammer, Sean Conlon, Brad Howard
Supervising Producer: Jeff Morganteen
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The Recession Has Finally Begun, But Only For America’s Rich
source
Micron’s hometown of Boise, Idaho has a growing crop of newly minted millionaires.
The AI-driven memory boom is showing up in the form of job growth, new construction projects, a bustling dining scene and an influx in new residents.
CNBC’s Katie Tarasov explains. Find the full report in related video.
source
Half of single Americans say they are going on fewer dates or choosing less expensive activities because of rising costs, according to BMO’s 2026 survey.
But, the cost of dating itself is only part of the story. For millions of users, finding a date means paying for the apps.
Watch the full story in related video.
source
Billions of dollars have been raised for this year’s midterms elections, with a significant portion coming from big name tech billionaires in the cryptocurrency, artificial intelligence and online gambling sectors. Megadonors’ contributions are overwhelmingly behind Republicans in the 2026 midterm election, with 14 of the 20 largest donor groups exclusively or nearly exclusively backing GOP candidates or outside groups. CNBC’s Luke Fountain reports.
Chapters:
00:00 – 00:56 Introduction
00:57 – 03:37 Chapter 1 – Republican-aligned donors
03:38 – 05:07 Chapter 2 – Democrat-aligned donors
Reporter: Luke Fountain
Produced and Edited by: Romy Tarantino
Animation: Jason Reginato, Emily Park
Additional Camera: Macklin Fishman, Andrew Evers
Supervising Producer: Shawn Baldwin
Additional Footage: Getty Images
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Want to get ahead at work? Then you need to learn how to make effective small talk. In CNBC’s new online course, How To Talk To People At Work, expert instructors teach you how to use everyday conversation to gain visibility, build meaningful relationships and advance your career. Sign up now: https://cnb.cx/4sGlSkh
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The Megadonors Funding The 2026 Midterms
source
Auto repair prices have risen far faster than overall inflation. Mechanics say one key reason is the new software, parts, and safety technology. Shops are spending more on software access and safety calibration equipment. While the number of auto repair shops has grown, some who work in the business say it is getting harder to keep up, especially for smaller ones.
Chapters:
0:00 Introduction
02:09 Chapter 1: Complicated and expensive
04:02 Chapter 2: Access to vehicle data
Produced by: Robert Ferris
Edited and shot by: Darren Geeter, Natalie Rice
Additional Camera: Ryan Baker
Post production support: Erin Black
Animation: Jason Reginato, Emily Park
Senior managing producer: Tala Hadavi
Addition footage: Getty Images
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
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About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Want to get ahead at work? Then you need to learn how to make effective small talk. In CNBC’s new online course, How To Talk To People At Work, expert instructors teach you how to use everyday conversation to gain visibility, build meaningful relationships and advance your career. Sign up now: https://cnb.cx/4sGlSkh
Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
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#CNBC
Why It’s So Expensive To Run An Auto Repair Shop
source
Printed circuit boards are a quiet but crucial part of every electronic, and the U.S. can’t make enough for Nvidia and others in the AI boom.
Some 60% of the world’s PCBs come from China, creating national security and supply chain risks.
CNBC’s Katie Tarasov explains.
source
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@adamwill1
December 18, 2023 at 5:27 pm
It all depends on your point of view; there will always be moments of prosperity for some individuals and times of depression or recession for others. My primary concern is how to grow my reserve of $220k which has been sitting duck since forever with zero to no gains.
@petercook3143
December 18, 2023 at 5:27 pm
Its not all driven by the stock market. When a home builder(Private corp) builds a home, and an employee of a local paper plant buys it, there is no interaction of the stock market. When the workers that work for the builder report to work and earn an income, they dont immediately invest in the stock market, they pay their bills and feed their kids first and fill up the tank. When the builder realizes profit on the home sold, he pays his equipment invoices first and his idea of investing, is buying more ad space on FB. The stock market is last resort through Mutual funds, it is a place for spare excess income that the owner doesnt have time to manage directly.
@codeblue11
December 18, 2023 at 5:27 pm
We can't ignore the potential impact on portfolios. Bonds are often considered a safe haven, and if they crumble, investors like me might scramble. I’ve been investing for 11 yrs and my $1m portfolio has never been this depleted, how i do hedge this?
@faketrump3605
December 18, 2023 at 5:27 pm
"Only For America's Rich". who the Richs? workers? they are classified as Richs? nice.
@Davidstowe872
December 18, 2023 at 5:27 pm
This recession is most likely the result of an external factor. For the first time in decades, the United States is losing its clout as a federal reserve currency. They don't have any more economies to use to control inflation, and less money is being spent on stock and oil trading than in the past. They all lend support to the idea that a new multilateral world order is in the works.
@willthomas7950
December 18, 2023 at 5:27 pm
Inflation 2023
@empressjane-zv4gq
December 18, 2023 at 5:27 pm
It surprises me why everybody gets really worked up about recession and inflation data. Inflation has always existed, and people have been using investments to beat the inflation. The stock market return, for example, always beats inflation. I heard of someone who invested $121k last October, and has grown the portfolio by more than $400k. I need recommendations that can give me similar return.
@tiffanyhwang1738
December 18, 2023 at 5:27 pm
The recession has been going on for like two years 😅😅
@marsenpai9078
December 18, 2023 at 5:27 pm
Oh my god. Comment section is all about spam.
Came back to this vid since we talking about soft landing, meaning there's no recession. Gj cnbc, you totally missed the whole crisis
@brian76382
December 18, 2023 at 5:27 pm
Great video! i really have a question For someone with less than $10,000 to invest, how would you recommend we enter the crypto market? I am at studying some traders and copying their strategy rather than investing myself and losing money emotionally what's your take on this approach?
@NancyFranciss
December 18, 2023 at 5:27 pm
The current situation is incredibly dire for people in the United States and other countries. The global economy is facing a significant downturn, with increasing inflation rates and unemployment figures.
@JodiBarcey
December 18, 2023 at 5:27 pm
Thanks for keeping us updated! This administration is putting many families into difficult situations. A lot of folks are financially struggling to live, put a roof over their head and put food on the table. You've helped me a lot Ms Pacey Almond, imagine investing $1,500 and receiving $7,800.
@jarrettscherrer2189
December 18, 2023 at 5:27 pm
🌚,🌞
🚯,💧
🏥,🌲
@tigerkites
December 18, 2023 at 5:27 pm
I see many just talk about investment, stock, real estate, blablabla… without realizing it is the working class that are the true fundamental for all upper class instruments. Without the working class, all will simply vanish. Money won't buy you any goods or service without the working class, yet the focus is still on spending (consumer). Our consumerism driven economy will come to an end soon without a strong working class, and yet the working class is struggling to pay for basic needs like food/housing.
How in the world we come this?
Maybe one day we all become paper rich, have a million or billion. Though I just can't figure out where our necessities come from when we all have our "financial freedom"?
@kcdiazWTV
December 18, 2023 at 5:27 pm
2:23 Windows Printer Test Page.😂
@MargaretSusan-kw2ff
December 18, 2023 at 5:27 pm
A flailing U.S. economy and elevated global tensions reduce the likelihood of prolonged inflation or higher long-term Treasury yields. Renewed buying strength in markets in September and October. I want to invest more than $100k, but I'm not sure on how to mitigate risk
@bellajr
December 18, 2023 at 5:27 pm
Recession is most likely the result of an external factor For the first time in decades , the United States is losing its clout as a federal reserve currency . They don't have any more economies to use to control inflation , and less money is being spent on stock and oil trading than in the past . They all lend support to the idea that a new multilateral world order is in the works .
@thenaturalhuman9568
December 18, 2023 at 5:27 pm
By wealthy do they mean middle class
@thenaturalhuman9568
December 18, 2023 at 5:27 pm
Seriously?
@MollieIlamas
December 18, 2023 at 5:27 pm
I used to think every investor went broke during recessions, meanwhile some made millions. I also thought everybody went out of business during the Great Depression, but some went into business. Bottom line, there's always depression for some and profit for others, it all starts from having the right mindset. That said, I've set asides part of my savings to invest for future. Unfortunately I'm a complete noob.
@PhillGeofrey
December 18, 2023 at 5:27 pm
Diversification and a thorough understanding of the market dynamics are crucial, especially during periods of uncertainty. Keeping an eye on both the positive and cautionary signals can help investors
@WittleSerendipity
December 18, 2023 at 5:27 pm
I feel like we're in a recession right now…. it feels tighter than 2009 for me right now, honestly.
@Snowy123
December 18, 2023 at 5:27 pm
Theyll find a way to socialize their loses.
@madhavyu
December 18, 2023 at 5:27 pm
Tiniest violin.
@chris-pj7rk
December 18, 2023 at 5:27 pm
We experienced the peak of our era, and now it is gone. Recession is tanking everything including 401K. My retirement equities portfolio of $750K is in the reds. I keep losing because of inflation. This world will fall to the corrupt rulers in the same way that Rome did. I'm sorry if you're thinking about retiring and you're worried that your pension won't be enough to meet the rising cost of living. Horrible foreign policies everywhere, bad regulatory policy, bad fiscal policy, and bad energy policy.
@jonathoncas
December 18, 2023 at 5:27 pm
Quit trying to make me feel bad for rich people. Nobody cares
@leondonald
December 18, 2023 at 5:27 pm
The 1% of rich people think of how to invest their money to increase their wealth during the recession. While 99% of struggling hard-luck people think of how to survive without food and daily necessities in the recession and the coming hyperinflation.
@HelenaBonham-pz4ly
December 18, 2023 at 5:27 pm
As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
@mandoboyo
December 18, 2023 at 5:27 pm
2:13 did this guy say anything?
@Deborah_C1
December 18, 2023 at 5:27 pm
I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300,000, yielding almost no gains for quite some time.
@FredSlocombe
December 18, 2023 at 5:27 pm
What is the ratio of rich people to the rest of the population?
@albacus2400BC
December 18, 2023 at 5:27 pm
The recession has really eaten into my savings and my portfolio. I've lost more than 60% of my stock portfolio already, and it's becoming really appalling. Is there a way I could turn this around? 😔
@JenniferLynd
December 18, 2023 at 5:27 pm
I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.
@Demarcius
December 18, 2023 at 5:27 pm
Time for a wake-up call. Americans do their best with two hands.
@zztops4504
December 18, 2023 at 5:27 pm
News are always lagging.