Richest 10% of Americans account for nearly 50% of consumer spending

[borosp1]

This cant be sustainable long term where only wealthy can afford most of consumer goods and rest of the population is penny pinching.

Many Americans are pinching pennies, exhausted by high prices and stubborn inflation. The well-off are spending with abandon.

The top 10% of earners—households making about $250,000 a year or more—are splurging on everything from vacations to designer handbags, buoyed by big gains in stocks, real estate and other assets.

Those consumers now account for 49.7% of all spending, a record in data going back to 1989, according to an analysis by Moody’s Analytics. Three decades ago, they accounted for about 36%.
All this means that economic growth is unusually reliant on rich Americans continuing to shell out. Mark Zandi, chief economist at Moody’s Analytics, estimated that spending by the top 10% alone accounted for almost one-third of gross domestic product.
Between September 2023 and September 2024, the high earners increased their spending by 12%. Spending by working-class and middle-class households, meanwhile, dropped over the same period.

https://www.wsj.com/economy/consumers/us-economy-strength-rich-spending-2c34a571

 

[cytg111]

Idiots divided down the middle while the real conflict *should* be a class war.

 

[nakedfrog]

Idiots divided down the middle while the real conflict *should* be a class war.

Yeah but they're eating the cats and dogs and open borders are a huge problem and they're transing kids in schools after they poop in the Democrat-mandated school litter box in every classroom.

 

[cytg111]

Yeah but they're eating the cats and dogs and open borders are a huge problem and they're transing kids in schools after they poop in the Democrat-mandated school litter box in every classroom.

Yup all bs talking points perpetuated by your billionaire overlords.

The real antagonist of this story is the Ruperts of the world. The Musks. Thiels. Ellisons.

 

[Paratus]

This cant be sustainable long term where only wealthy can afford most of consumer goods and rest of the population is penny pinching.

https://www.wsj.com/economy/consumers/us-economy-strength-rich-spending-2c34a571

Business Majors: <Rails a line of coke> Look if we just replace workers with AI and automation and all our suppliers do the same we drive our cost to nothing and our profits will skyrocket!

Normal person: But if everyone is laid off who is going to buy the products so you make a profit.

Business Major: Like mana from heaven the freehand of the market will provide profits!

Normal person: but that doesn’t make any s…

Business Major: I SAID THE FREEHAND WILL PROVIDE! <rails another line of coke>

 

[hal2kilo]

Business Majors: <Rails a line of coke> Look if we just replace workers with AI and automation and all our suppliers do the same we drive our cost to nothing and our profits will skyrocket!

Normal person: But if everyone is laid off who is going to buy the products so you make a profit.

Business Major: Like mana from heaven the freehand of the market will provide profits!

Normal person: but that doesn’t make any s…

Business Major: I SAID THE FREEHAND WILL PROVIDE! <rails another line of coke>

Would love to see how much the percentage of houses paid for in cash has changed in the last 10 years or so.

 

[dullard]

Would love to see how much the percentage of houses paid for in cash has changed in the last 10 years or so.

Okay. The percentage is rising, but not by much nor is it out of the ordinary: https://www.nar.realtor/blogs/econo...buyers-highest-since-2014-at-32-of-all-buyers

The actual number of all cash sales are down since not many are buying right now: https://fred.stlouisfed.org/series/HSTFC

 

[Greenman]

People with a lot of money spend a lot of money, news at 11.

 

[nakedfrog]

People with a lot of money spend a lot of money, news at 11.

"Three decades ago, they accounted for about 36%."

 

[hal2kilo]

"Three decades ago, they accounted for about 36%."

Yea, nothing screams houses cost too much for the average person when a small group of people are gobbling up everything in site.

 

[pete6032]

People with a lot of money spend a lot of money, news at 11.

Was Charlie Kirk shot in front of his wife or not?

 

[iRONic]

People with a lot of money spend a lot of money, news at 11.

*whoosh*

 

[GodisanAtheist]

Business Majors: <Rails a line of coke> Look if we just replace workers with AI and automation and all our suppliers do the same we drive our cost to nothing and our profits will skyrocket!

Normal person: But if everyone is laid off who is going to buy the products so you make a profit.

Business Major: Like mana from heaven the freehand of the market will provide profits!

Normal person: but that doesn’t make any s…

Business Major: I SAID THE FREEHAND WILL PROVIDE! <rails another line of coke>

- Invisible Hand Jobs

 

[Paratus]

- Invisible Hand Jobs

 

[brycejones]

People with a lot of money spend a lot of money, news at 11.

You never fail to miss the actual point.

 

[SteveGrabowski]

This dual class society feels like the steady state of capitalism. It certainly is the steady state of the US.