The Impact of Wealth Concentration on Consumer Spending

Recent data indicates that the top 10% of earners in the U.S. account for 50% of consumer spending, a noticeable increase from 30 years ago when they represented only 36%. This trend reflects not just their immense income, but a shift in spending habits, with the ultra-wealthy increasingly prioritizing experiences over physical goods. The luxury market has stabilized, yet spending on activities such as travel and exclusive experiences has surged, influenced by a growing realization of the happiness derived from experiences. This economic dynamic suggests that providing financial resources to lower-income households could yield higher spending and stimulate economic growth more effectively than granting additional wealth to the affluent.