The U.S. economy is no longer driven by the middle class. It is carried by the top 20 percent. The top 10 percent alone now account for nearly half of all consumer spending. This is not a passing trend. It is a complete takeover.
“The top 10 percent of U.S. households… account for 49.7 percent of consumer spending – a record since at least 1989.” https://www.foxbusiness.com/economy/americas-wealthiest-households-driving-nearly-half-consumer-spending-moodys
Since the end of 2019, personal spending rose by 50 percent among the top 20 percent. The bottom 80 percent increased spending by just 25 percent. Inflation over the same period was 24 percent. That means most Americans are barely keeping up. Spending growth for the majority is flat. Purchasing power is shrinking.
“The top 10 percent of households upped their spending by 58 percent. The bottom 80 percent increased their spending by 25 percent… Wealthy consumer spending has never been better.” https://www.forbes.com/sites/eriksherman/2025/02/26/the-government-needs-to-keep-the-wealthy-spending-and-gdp-growing/
The middle class is not shrinking. It is being pushed aside. GDP is now tied to the spending habits of the wealthy. Moody’s reports the top 10 percent contribute at least one-third of GDP. This is not economic diversity. It is dangerous dependence.
“The U.S. economy depends on the rich. That could hurt the labor market… consumption from middle and lower income groups continues to fade.” https://www.axios.com/2025/08/08/stock-market-us-economy-rich-poor
Prices keep rising. Tariffs have returned. Interest rates remain high. But spending holds steady because the top 20 percent continue buying. Everyone else is simply surviving.
“Spending is likely to cool more visibly among lower- and middle-income consumers.” https://www.morganstanley.com/insights/articles/us-consumer-spending-trends-2025
Real people see it clearly:
“America isn’t broke but most Americans are. The top 20 percent are living large and carrying the entire economy.” https://x.com/_/status/1954184893992518083
This is how inequality destroyed the engine of growth. The middle class used to be the backbone. Now it is dead weight. The economy does not need them to grow. Just to not revolt.
Sad.