The top 10% of earners in the US are driving economic growth by spending lavishly, according to new data from Moody’s Analytics and the Wall Street Journal. This group now accounts for a record 49.7% of all spending nationwide, up from 36% 30 years ago.
Moody’s estimates that the top 10% contribute a third of the country’s GDP, as lower-income households cut back on spending. The wealthy are spending more than ever before, outpacing inflation and increasing their luxury purchases.
In contrast, the bottom 80% of earners are only seeing modest gains in spending, despite a 21% price increase over four years. According to Bank of America, the richest third of people are splurging on high-end items, with some even traveling abroad to indulge in luxury goods.
As one economist noted, “They’re going to Paris and loading up their suitcases with luxury bags and shoes and clothes.” This trend highlights the growing economic divide between the wealthy and those who struggle to make ends meet.
Source: https://qz.com/us-economy-consumer-spending-wealthy-1851766072