Top 10% US Households Drive Half Consumer Spending Amid Inflation Struggles

The economic divide in the U.S. has become increasingly pronounced, with wealthier Americans continuing to spend freely, buoyed by a strong stock market, while lower-income households face financial strain from persistent inflation and a cooling labor market. In Chicago, this disparity is vividly illustrated by individuals like Ulysses Moreno, who relies on food pantries after job loss, contrasted with thriving luxury retail and dining nearby. Experts note that the top 10% of U.S. households now account for nearly half of all consumer spending, the highest share since the late 1980s, masking economic insecurities faced by many. Wealthy retirees focus on tax efficiency and legacy planning rather than cutting expenses, often downsizing homes to manage costs better. Meanwhile, middle-class families struggle with lifestyle inflation and poor budgeting habits that prevent wealth accumulation, keeping them trapped in paycheck-to-paycheck cycles. This divide poses challenges for policymakers, as strong spending among the wealthy obscures broader economic instability affecting many Americans.