K-Shape Economy: Spending, Jobs and Debt Split by Income
America is in a persistent K-shaped recovery: higher earners continue to spend on essentials and leisure while lower- and middle-income households cut back on groceries and face rising credit stress. Wage growth has shifted in favor of the top third since 2024, GDP gains have disproportionately benefited higher-income groups, and tax changes may widen the gap. Data show richer households increasing purchases of meat, produce, and beverages while lower earners trim discretionary items; recent grads face higher unemployment than the overall workforce, and total credit-card debt rose to about $1.28 trillion in late 2025 with delinquency highest among the lowest-income households.
- The rich are making and spending more money. Everyone else is cutting back. Business Insider
- Would America be in recession without the super-rich? The Economist
- K-Shaped Expansion Continues Apollo Academy
- U.S. consumer spending shows uneven resilience with the K-shaped economy continuing – BofA Seeking Alpha
- BofA reports US credit card spending up 3.8% in February Investing.com
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