The K-shaped economy: compelling story, shaky data.
The popular claim — that the top 10% drives ~50% of U.S. consumer spending, making America recession-proof only thanks to the super-rich — turns out to rest on shaky methodology.
More direct data from the BLS tells a different story: the top 20% of earners account for just over a third of spending, a share that has barely moved in decades — through the 2008 financial crisis and COVID-19 alike. Card-spending data and Fed retail figures show no unusual divergence between income groups either.
The takeaway? Narratives can outrun the data. Interrogating the numbers behind the headlines is more important than ever — especially when they shape financial decisions, policy, and access.
At Loquat Inc., building tools that serve a broad base of Americans — not just the top tier — remains our focus. A resilient economy needs broad participation, not just concentrated wealth at the top.
