The Impact of Economic Growth on Consumer Behavior

Recent reports indicate that economic growth has surpassed expectations, with a notable increase from 1.4% in the first quarter to 2.8% in the second quarter. This growth is largely attributed to increased consumer spending, which plays a significant role in the overall economy, accounting for nearly 70% of it. Wealthier households are benefiting from rising asset values, leading them to increase their spending, while lower to middle-income Americans are facing challenges, leading to a significant increase in credit card debt. This divergence in economic experience raises concerns about the long-term financial stability of those struggling with higher prices and limited resources.