In recent years, a growing gap in spending power has made a big impact on how Americans live and how the economy works. Today, the top 10% of the wealthiest Americans are responsible for about half of all the money spent on goods and services in the U.S. This means that stores, brands, and even big parts of the economy are starting to focus more on what rich people want and can afford. As a result, prices for things like cars, vacations, and even everyday items are going up, making it harder for middle- and lower-income families to keep up. While wealthy households keep spending more, most Americans are just barely managing to outpace inflation—if at all. This divide is starting to raise concerns about fairness and the long-term health of the economy.

As of late 2025, inflation in the U.S. is staying higher than the Federal Reserve’s target of 2%, with core inflation expected to be around 2.9%. This means the prices of everyday goods and services—especially housing and other services not related to food or energy—are still rising faster than expected. Since early 2021, inflation has remained stubborn, which shows that deeper issues in the economy are at play. Rising housing costs are a major reason many Americans feel financial pressure. Economists say inflation will likely stay above the target through 2026, partly because of higher tariffs on imported goods, which have increased from 2% to 17%. These tariffs make many products more expensive, adding to the problem.