As The Rich Start To Struggle, Will They Pull Down The Economy? | Danielle DiMartino Booth

17 snips

Feb 4, 2026

Danielle DiMartino Booth, former central bank analyst and founder of QI Research, explains why cracks at the top of the K-shaped economy could matter. She discusses weakening spending by the wealthy, risks from credit stress and refinancing, rising job losses and shelter disinflation. She also covers market rotation, gold volatility, and defensive trades to consider.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Layoffs Artificially Inflate Margins

Corporate profit margins are being sustained in part by layoffs rather than rising revenues.
That margin support masks weakening labor demand that will eventually feed back into GDP and consumer income.

INSIGHT

AI Investment Growth Is Slowing

AI investment growth has slowed year-over-year even as projects continue and financing shifts to bond issuance.
Many planned AI projects have been pulled, so near-term job creation from AI is limited.

INSIGHT

Infrastructure Jobs May Be Short-Lived Locally

Many infrastructure and data-center projects produce mainly short-term construction jobs with few long-term local hires.
AI and productivity gains must create broader new industries to absorb displaced workers and graduates.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

We've all come to accept the US is now a K-shaped economy.The rich are at the top, living large off of their asset appreciation.And everyone else - the vast majority -- is in the bottom leg. Feeling increasingly left behind.But the rich have been spending so amply that they've kept the averages for retail spending -- which drives the majority of our GDP -- in "healthy" territory.But what will happen if the rich start to stumble?Analyst Danielle DiMartino Booth thinks we are seeing signs they're starting to. And she's concerned they could pull down the economy along with them.To find out why, and what the repercussion will be, watch this video.

WORRIED ABOUT THE MARKET? SCHEDULE YOUR FREE PORTFOLIO REVIEW with Thoughtful Money's endorsed financial advisors at https://www.thoughtfulmoney.com#marketcorrection #deflation #economy _____________________________________________ Thoughtful Money LLC is a Registered Investment Advisor Promoter.We produce educational content geared for the individual investor. It’s important to note that this content is NOT investment advice, individual or otherwise, nor should be construed as such.We recommend that most investors, especially if inexperienced, should consider benefiting from the direction and guidance of a qualified financial advisor registered with the U.S. Securities and Exchange Commission (SEC) or state securities regulators who can develop & implement a personalized financial plan based on a customer’s unique goals, needs & risk tolerance.IMPORTANT NOTE: There are risks associated with investing in securities.Investing in stocks, bonds, exchange traded funds, mutual funds, money market funds, and other types of securities involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods.A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.Thoughtful Money and the Thoughtful Money logo are trademarks of Thoughtful Money LLC.Copyright © 2026 Thoughtful Money LLC. All rights reserved.