From Chicago Mag
By Whet Moser
"Last week I highlighted a Chicago Fed report that, counterintuitively, found that in the wake of the Great Recession, people in higher income brackets are actually more pessimistic than anyone else about their expected future incomes. I've been thinking about some logical reasons for this, and one basic one leaps to mind: bonus compensation. If a substantial part of your potential annual income is wrapped up in bonuses, it can vary substantially, particularly in the event of market shocks or contractions. The same goes for investment income or stock options. In short, the incomes of the wealthy, in particular industries at least, are a lot more variable than that of the merely salaried. They still make a lot more money, but that income can fall by a substantial percentage, which normally isn't the case for salaried employees."
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