US Wealth Divide Widens: Top 20% Account for Record 58% of Personal Spending
The top 20% of US earners now make up 58% of all personal spending, the highest on record, while the bottom 80% account for just 42%, the lowest. The gap has grown sharply since the pandemic.
New data highlights a record divergence in US consumer spending patterns. The top 20% of earners now account for roughly 58% of all personal outlays, the highest figure on record, while the bottom 80% represent just 42%, the lowest ever recorded.
Since the 2020 pandemic, annual spending growth among the top quintile has averaged 8.3%, nearly double the 4.5% pace seen for the bottom 80%. Over the past year alone, the disparity widened further: top earners boosted spending by 6.5% versus only 2.6% for the rest.
For context, in the 1990s both groups contributed roughly equal shares—about 50% each—of total personal spending. The widening gap underscores how asset ownership has become a key driver of economic outcomes, as the post notes that "asset owners are the only winners in this economy."
Source: The Kobeissi Letter