The U.S. Economy Depends More Than Ever on Rich People

finance
Created 2/23/2025
Updated 2/23/2025

The U.S. economy is increasingly reliant on the top 10% of earners, who now account for nearly half of all consumer spending. While middle- and lower-income households struggle with inflation, wealthy Americans—benefiting from rising asset values—are splurging on travel, luxury goods, and high-end services. Their spending has surged 58% since 2020, far outpacing inflation and the modest spending growth of the bottom 80%. Analysts warn that a market downturn could significantly impact economic growth. Meanwhile, budget retailers struggle as businesses catering to the wealthy thrive.

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