Our So-Called Boom

Paul Krugman

It was a merry Christmas for Sharper Image and Neiman Marcus, which reported big sales increases over last year’s holiday season. It was considerably less cheery at Wal-Mart and other low-priced chains. We don’t know the final sales figures yet, but it’s clear that high-end stores did very well, while stores catering to middle- and low-income families achieved only modest gains.

Based on these reports, you may be tempted to speculate that the economic recovery is an exclusive party, and most people weren’t invited. You’d be right.