The Rich Are Spending 58% More—Can The Economy Survive If They Stop?

Affluent Americans are fueling an unprecedented portion of economic growth, creating potential vulnerability if their spending habits change.

High-income households now generate nearly half of all consumer purchases—a shift from three decades ago when the same high-income consumers accounted for roughly a third of spending.

“The finances of the well-to-do have never been better, their spending never stronger and the economy never more dependent on that group,” Mark Zandi, chief economist at Moody’s Analytics, told The Wall Street Journal.

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The top 10% of earners, those making about $250,000 annually or more, now account for 49.7% of all spending, according to a The Journal. The dependency has reached record levels in data going back to 1989.

While wealthy shoppers increased their purchasing by 12% between September 2023 and September 2024, according to the report, while middle and working-class spending actually declined during the same period.

The spending divide becomes clear when examining four-year trends. Upper-income households boosted expenditures by 58% since 2020, while everyone else managed just 25% growth—at the same time, prices have increased about 21%.

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The disparity is largely the result of pre-COVID and post-COVID asset appreciation benefiting property and stockholders The Journal's figures show top earners’ collective net worth swelling by $35 trillion since late 2019.

The wealth effect transforms spending habits. “A rising net worth certainly gives you confidence to do more things,” Tom Shoaf, a New Mexico test pilot earning about $500,000 annually with his wife, told The Journal.

Bank of America’s BAC transaction data confirms spending by their wealthiest customers growing faster than lower-earning clients.

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“They’re going to Paris and loading up their suitcases with luxury bags and shoes and clothes,” David Tinsley, senior economist for the Bank of America Institute, told the Journal.

Luxury travel particularly benefits. Premium airfare sales at Delta Air Lines DAL rose 8% while standard tickets gained only 2%.

Meanwhile, retailers serving budget-conscious shoppers struggle. “It’s an extreme bifurcation,” JPMorgan Chase analyst Matthew Boss said. “They’re all battling for fewer dollars.”

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