A recent analysis by Moody’s Analytics for the Wall Street Journal found that households with incomes over $250,000 now account for nearly half of all consumer spending in the US, the highest share since data collection began. This shift is attributed to affluent individuals driving a larger share of spending.
According to economist Michael Brown at Visa, this gap between rich and poor households has widened since 2023 and is particularly noticeable during summer and winter months when high-end travelers often spend abroad. Higher-income individuals tend to own stocks, which has led to increased spending despite inflation and a softening labor market.
However, some economists argue that this concentration of spending among the wealthy may hinder long-term economic growth. Economist Josh Bivens at the Economic Policy Institute suggests that an equal distribution of incomes could lead to more jobs being created in sectors such as elder care and childcare, rather than high-end hotels and resorts. A more even distribution of income could also enable more people to afford necessary care for their parents and children.
Source: https://www.marketplace.org/2025/02/24/higher-income-americans-drive-bigger-share-of-consumer-spending