Consumption in the United States is no longer mass: it depends on 10%

Source: CritpoTendencia Original Title: Consumption in the United States is no longer mass: it depends on the 10% Original Link: For decades, consumption was presented as the great democratic engine of the U.S. economy. Millions of households driving demand, supporting growth, and cushioning cycles. Today, that narrative is beginning to crumble.

Data shows a structural shift: the top 10% with the highest incomes in the United States now account for 49% of all consumer spending. This is the highest level ever recorded. Historically, this group increased its share by 13 percentage points over the past 30 years, a clear sign of purchasing power concentration.

When the growth engine ceases to be broad and starts to depend on a minority, the economic balance shifts.

The other side of the balance: the silent retreat of the 80%

As the top 10% gains weight, the rest lose relevance. The 80% of households with lower incomes now account for just 37% of total spending, a decline of 11 percentage points since the mid-1990s.

This is not a cyclical adjustment nor a statistical anomaly. It is a persistent trend that reflects how the capacity to consume has been eroded for the majority of the population, even during periods of economic growth and tight labor markets.

The economy continues to advance, but it does so on a shrinking consumption base.

When consumption defines GDP, concentration matters

In the United States, personal consumption accounts for about 68% of gross domestic product. Under this framework, the concentration of spending directly translates into concentration of growth.

Today, the top 10% of earners explain approximately 33% of all U.S. GDP. In contrast, the bottom 80% accounts for just 25% of total economic activity.

This implies that the health of growth no longer depends on median income but on the financial stability of a very small segment of the population.

An economy sustained by those who own assets

The pattern is clear. In this scheme, the main beneficiaries are not wages or general consumption, but those who hold financial and patrimonial assets.

Stocks, real estate, and business participations concentrate spending capacity and support economic dynamics. That’s why asset markets show greater resilience than aggregate consumption, even when macro indicators still seem solid.

When growth depends on a few, fragility does not disappear: it only remains hidden until that minority reduces spending.