Marketplace All-in-One Hey, big spender!
Sep 17, 2025
Samantha Fields, a Marketplace housing reporter, dives into the fascinating world of mortgage rates and their ripple effects on the housing market. She discusses why the recent dip in rates hasn't led to a house-hunting frenzy. Fields also highlights the surprising fact that the top 10% of earners are responsible for nearly half of U.S. spending, bringing intriguing context to consumer behavior amidst economic fluctuations. Plus, she touches on the struggles of Etsy sellers facing rising costs due to tariffs.
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Spending Hinges On The Top 10%
- The top 10% of earners accounted for nearly half of U.S. spending in Q2, a record since 1989.
- That concentration makes the economy dependent on wealthy households' asset-driven confidence and spending choices.
Asset Gains Create Fragile Demand
- Wealth tied to housing, stocks and bonds is volatile and can retrace, reducing high-earners' spending power.
- A pullback by top earners could cause substantial drag because lower-income spending isn't large enough to sustain growth.
Inequality Shapes Markets And Policy
- The economy increasingly works for the top while middle and bottom see weaker gains, creating a self-reinforcing loop.
- That shift influences consumer choices and policy priorities across markets and government.