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Top 20% Drive America's Economy While 80% Grapple Inflation — Here's Why This Spells Trouble

America's consumer engine is leaning harder than ever on the rich, with new Moody's data showing the top 20% of earners now account for more than half of all spending while outlays by middle- and lower-income households flatline.

What Happened: The skew is masking underlying weakness in demand that could spill into hiring, since small businesses, which are the biggest job creators, are seeing softer traffic from less-affluent customers, states a fresh Axios report.

The concentration has accelerated over time. As revealed in a social media post by The Kobeissi Letter, since the fourth quarter of 2019, personal spending among the top 20% of U.S. households has jumped about 50%. By contrast, the middle class and bottom 40% increased their outlays roughly 25%, about half that pace, while average prices rose 24% over the same period.