Are you a DINK, a YUPPIE, or a HENRY?
- Double Income, No Kids
- Young Upwardly Mobile Urban Professionals
- High Earners, Not Rich Yet.
Our economic recovery might depend on Henry.
Earning from $100,000-$250,000, the Henrys are in the top 20% income bracket and do 40% of all consumer spending. Patrons of Tiffany and Target, Pottery Barn and Lululemon, they support “accessible luxury” stores.
By 2010, after the Dec. 2007- June 2009 recession, the ultra affluent, the top 2%, had started spending again. Soon after, the Henrys joined their upper echelon cohort but it might not last. Now, high end car dealerships say the $190,000 Morgan Aero Supersport and the Lamborghinis are moving but not the used (pre-owned?) Jaguars. With worries over European sovereign debt, banks, and the tepid June employment report, the Henrys feel less confident. With less confidence comes less Henry spending because they do not have the permanent wealth that provides a buffer.
Most economists believe that consumer spending accounts for 70% of GDP. For unemployment to plummet and growth to soar, the Henrys need to spend.
One last acronym:
Sitcom: Single income, two children and oppressive mortgage.
I learned about Henrys from this Bloomberg article, heard more from Marekplace.com and then checked business cycles stats at NBER here.