Recent analysis highlights that American consumer spending, which constitutes nearly 70% of the US GDP, is increasingly concentrated among the wealthiest households. According to the Wall Street Journal’s Moody analysis, the top 10% of earners, with incomes over $250,000, account for almost half of all consumer spending.
This growing spending disparity has become more pronounced in recent years, particularly in 2023, with notable seasonal trends. Wealthy individuals are increasingly able to afford luxurious experiences, such as international travel, while those with lower incomes face budget constraints due to inflation and a weak labor market.
Stock ownership among affluent households has contributed to their spending power, making the economy more vulnerable if this wealth-driven consumption falters. While some argue that wealthy households support labor-intensive industries, others suggest that a more equitable income distribution could lead to a shift in job markets, potentially increasing opportunities in elder care and childcare.
Overall, the article underscores the complexities of consumer behavior and economic health as it relates to income inequality.
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