The saving grace of this economy that everyone hates: Wealthy Americans are keeping it afloat by spending — throughout tariffs, inflation, war, you name it.
The ugliest part of this economy: The wealth gap between affluent and low-income households continues to widen, postponing or destroying the American Dream for millions hardworking folks.
Underpinning both the best and worst parts of America’s economy is the mindboggling stock market rally.
It’s a Catch-22 with no easy solution. But if the stock market rally that powers the divide fizzles out, the economy could take a significant beating.
Despite near-record-low consumer sentiment, Americans of all stripes and income levels are spending at a faster clip this year than in 2025, according to Bank of America Institute’s monthly report on depositor data. But wealthy Americans are doing most of the heavy lifting: The top 20% of earners make up 57% of US consumer spending, according to the Dallas Federal Reserve.
