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Wealthy Americans spending more time alone is reshaping the economy - Business Insider

Wealthy Americans spending more time alone is reshaping the economy - Business Insider

Wealthy Americans spending more time alone is reshaping the economy - Business Insider
Sep 17, 2020 1 min, 25 secs

A Bank of America note from late May laid out the thesis that COVID-19 would push consumer spending away from traditional entertainment such as amusement parks, movie theaters, and tourist attractions and toward what it called solitary leisure, which includes activities such as golfing and marine activities. .

Consumer spending was America's big economic driver of the early 21st century, with a lot of service jobs depending on the social leisure activities popular in big cities, especially the "experience economy" fueled by high-net-worth people traveling, eating out, and enjoying culture.

But it's never before entered a mass moment of solitary leisure like this.

The experience-based economy thrives on activities like sporting events, travel, and recreation with family, Daniel Yoder, the department chair of the Recreation, Park, and Tourism Administration at Western Illinois University, told Business Insider.

As long as people have the discretionary money, Yoder said, the experience-based economy will continue to grow.

He thinks the uptick in solitary leisure likely won't have a long-lasting effect and that social leisure will pick up where it left off if the pandemic is over in the short or even medium term, he said.

Goldman Sachs said consumer spending accounted for 70% of the American economy, while Deutsche Bank estimates that almost half of consumer spending comes from the top 10% of American households

Spending on solitary leisure alone won't fill a gap that big

The stock market has minted some conspicuous winners from solitary leisure, like Dick's Sporting Goods, Bank of America's top pick for the thesis

Yoder added that he worried about the social drawbacks of solitary leisure as the new normal, for however long it lasts. 

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