The benefits of the U.S. recovery that began more than five years ago are flowing downward.
Lower-wage workers saw bigger pay gains over the past year than the highest earners, reversing the trend from earlier stages of the recovery, according to economists at RBS Securities Inc. and Goldman Sachs Group Inc. (GS)
While the improvement is nascent and minimal, the plunge in fuel prices is magnifying the effects.
Fatter paychecks bode well for economic growth as families at the lower end of the wage scale are more likely to spend extra cash than their wealthier counterparts, who tend to squirrel some of it away.
That means the luxury categories such as private jets that dominated sales last year are giving way to the more mundane, including televisions and restaurant meals. (Read More)