A recent analysis by Moody’s reveals that the top 10% of earners in the US, with combined annual incomes of $250,000 or more, are driving record-high spending. This group accounts for 49.7% of all spending in the country, a three-decade high. Despite stagnant wages, these affluent households are bolstered by stock market gains and real estate investments.
According to Mark Zandi, chief economist at Moody’s, nearly one-third of the US gross domestic product comes from the spending habits of this demographic. They tend to be older and own more assets, which increases in value as time passes, widening the wealth gap.
The top 5% of households are spending 10% more on luxury goods, with a focus on high-end products like designer bags, first-class airline tickets, and expensive vacations. In contrast, businesses catering to lower-income families are struggling, such as Kohl’s and Family Dollar, which are closing stores nationwide.
The economy’s reliance on the affluent demographic is causing concern, with Zandi stating that “the finances of the well-to-do have never been better, their spending never stronger, and the economy never more dependent on that group.”
Source: https://www.salon.com/2025/02/24/households-making-250k-or-more-are-driving-the-economy-report