America’s Rich Are Spending Like Never Before — While Everyone Else Falls Behind, Thanks To Runaway AI Stocks, Says Top Economist

The divide between America’s wealthiest spenders and the rest of the population has reached a record high, a trend Moody’s Analytics Chief Economist Mark Zandi attributes directly to speculative market booms, particularly the recent surge in “runaway AI stocks.”

A Record Divide

In an analysis of economic data released last week, Zandi revealed that the U.S. economy is becoming “steadily more K-shaped.”

According to Moody’s updated estimates, the top 20% of the income distribution—households earning over $175,000 annually—accounted for nearly 60% of all personal outlays in the third quarter of 2025.

This figure represents a new peak in data stretching back to 1989. The accompanying chart illustrates a stark divergence: as the spending power of the bottom 80% (the blue line) trends downward, the top 20% (the green line) has climbed sharply, creating a distinct “K” shape in the nation’s consumption patterns.

The AI Factor

Zandi traces the root of this disparity to the “wealth effect” generated by surging asset prices. He noted that the most significant spikes in inequality occurred during two specific periods: the late 1990s and the post-pandemic era.

“These two periods were characterized by surging stock prices,” Zandi explained. “The late 1990s by speculation in internet stocks, and the recent period by runaway AI stocks.”

Because the wealthy are the primary owners of equity portfolios, boom cycles in the market disproportionately pad their net worth. As their “wealth surged,” Zandi noted, “they spent more,” pulling further away from the bottom 80% of earners who rely primarily on wages rather than capital gains.

Societal Risks

The economist warned that an economy dependent on the investment returns of a small demographic “can’t be good.” The heavy reliance on the well-to-do leaves overall economic growth vulnerable to stock market volatility.

Beyond the financial mechanics, Zandi linked this economic bifurcation to broader national instability.

He suggested that the “increasing angst” of Americans and the nation’s “fractured politics” are likely symptoms of an economy where growth is enjoyed by the few while the majority falls behind.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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