Economist Podcasts Suck in the middle: the hole in America’s consumer base
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May 12, 2023 
Tom Lee Devlin, The Economist's global business correspondent; Fiametta Rocco, senior editor and culture correspondent; and Tom Wainwright, tech and media editor, tackle the shifting landscape of American consumer behavior. They discuss how inflation pushes middle-class shoppers toward budget brands while luxury markets remain resilient. The trio also dives into the transformative role of AI in journalism, weighing its potential benefits against job displacement concerns, and reflects on the importance of marginalized narratives through historical lens.
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Retail Rollercoaster
- American shoppers experienced spending fluctuations due to the pandemic, stimulus checks, and inflation.
- This has led to a slump for mid-range brands, while luxury retailers like Tiffany's thrive.
Squeezed Middle
- Middle-class consumers, facing financial pressure, are increasingly shopping at cheaper stores.
- This trend benefits discount retailers while squeezing mid-range businesses.
Discount Stores Thrive
- Discount stores like Burlington and Walmart are outperforming mid-range retailers like Macy's.
- Even in other sectors, like fast food, McDonald's saw significant growth compared to mid-range restaurants.
