While most Americans pinch pennies at the grocery store, the nation’s wealthiest are splurging on everything from African safaris to designer handbags in Paris. The country’s top 10% of earners now represent about half of all consumer spending — up from 36% three decades ago. Moody’s Analytics’ Mark Zandi estimates that this concentration of purchasing power among top earners (households making $250K+ annually) now accounts for nearly one-third of GDP — making the US economy more dependent than ever on the whims of its wealthiest citizens.

• The affluent have increased their spending by 12% between Sept. 2023 and Sept. 2024, while working and middle-class households reduced spending during the same period.
• Luxury purchases abroad by the wealthiest 5% jumped over 10% compared to the past year as brands moved away from huge price hikes that accounted for 80% of their 2019-2023 growth.

Rich taste, poor stability: As the economy increasingly relies on affluent consumers, it exposes itself to new vulnerabilities. This shift is evident as budget retailers such as Big Lots face bankruptcy and Family Dollar closes stores while luxury brands like LVMHLVMH

flourish. Additionally, the wealth gap has widened as the top 20% of earners have seen their net worth surge by $35T since late 2019, while the bottom 80% gained just $14T combined. This bifurcated recovery could spell trouble if asset prices decline or consumer confidence wavers among the wealthy — potentially triggering a broader economic downturn that would affect all income levels.