The American economy is still moving, but it’s not moving for everyone. The top 10 percent of earners are now responsible for nearly half of all consumer spending. That’s not a projection. That’s a current condition. Moody’s Analytics confirms that households earning around $250,000 or more are driving 49.7 percent of total consumption. Meanwhile, the bottom 60 percent of Americans are barely holding the wheel, accounting for just 20 percent of spending. That’s not a gap. That’s a fracture.
In this crazy economy the top 10% account for 50% of the spending and the bottom 60% account for just 20%. pic.twitter.com/iif6BTGNGo
— Markets & Mayhem (@Mayhem4Markets) June 19, 2025
The imbalance is growing. In 1990, the top 10 percent accounted for about 36 percent of spending. That number has climbed steadily, fueled by asset inflation, stock market gains, and wage stagnation for the rest. From September 2023 to September 2024, spending by high-income households rose 12 percent. Spending by middle and lower-income groups declined. That’s not a cycle. That’s a shift.
The wealth effect is doing the heavy lifting. Households in the top bracket own most of the equities. They’ve seen their portfolios balloon while inflation eats away at everyone else’s grocery bill. The S&P 500 is up. NVIDIA is up. Real estate is up. But wages for the bottom half have barely moved. The result is a consumption economy powered by a sliver of the population.
This isn’t just about fairness. It’s about fragility. When half the economy’s spending comes from one group, the system becomes brittle. If markets correct or asset prices fall, the spending engine stalls. That’s not a theory. That’s a risk flagged by economists at Visa and Moody’s. The economy is leaning on a narrow beam.
The bottom 60 percent are not just spending less. They’re carrying more debt. Credit card balances are at record highs. Delinquencies are rising. Rent and insurance costs are absorbing more than 50 percent of income for many households. That’s not discretionary spending. That’s survival.
The American consumer still drives nearly 70 percent of GDP. But the driver’s seat is getting crowded at the top. The rest are riding in the back, watching the road disappear.
Sources: