Marketplace As many shoppers scrimp and stress, the wealthiest splurge
20 snips
Aug 18, 2025 Lydia Clark, the owner of DTLA Cheese, shares insights on the unique challenges of running a specialty cheese shop in a shifting economy. She discusses how economic disparity impacts consumer spending, with wealthier households increasingly driving purchases while lower-income shoppers struggle. Clark dives into the emotional toll of rising tariffs on imported cheeses and the complexities of maintaining a small business amid inflation. Her personal stories reveal both resilience and the human side of navigating economic fluctuations.
AI Snips
Chapters
Transcript
Episode notes
High Earners Power Consumer Spending
- The top 20% of households now account for a much larger share of consumer spending compared with lower-income households.
- That concentration helps explain strong retail sales despite falling consumer sentiment.
Credit And Wealth Give High Earners Flexibility
- Higher-income households have not rebuilt credit card balances to 2019 levels and therefore have more available credit capacity.
- That available credit, plus investment income, gives wealthier consumers more room to keep spending now.
Shared Pessimism Raises A Risk
- All income cohorts are now about equally pessimistic about the economy, according to the University of Michigan.
- If high-income consumers pull back, it's hard to see how overall spending can keep growing.