Jim Cramer drew a stark contrast between the financial paths of the affluent and the average consumer, using a “chip” analogy to illustrate the growing wealth gap.
What Happened: On Thursday, Cramer highlighted the disparity in the economy, emphasizing how the wealthy are investing in microchips while the average consumer struggles with the inflated cost of everyday items like potato chips, reported CNBC.
He pointed out that while the pandemic has led to an inflated economy, most Americans find it challenging to afford basic necessities, let alone invest in stocks such as NVIDIA Corp (NASDAQ:NVDA).
“The bottom line is that the paths of the people who invest in the microchips, or the enterprises that buy them, are very different from the paths of people buying knock-off potato chips, and, perhaps, never the twain shall meet,” Cramer said.
He mentioned that the returns on investments in costly microchips are so high that they become addictive for ...