Where Data Tells the Story
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Over the past 6 months, economic and financial commentators have commented on the appearance of the K-shaped economy in the US, whereby spending is growing in the hands of a rich few but shrinking or stagnant amongst a poorer many. This visual highlights that spending divergence amongst the top 1% or top 10% versus bottom 50% of domestic spenders is profoundly a US trend amongst G7 nations. The US has in fact been an outlier in terms of spending inequality amongst developed countries since 2005. As the US is the world’s richest economy, and responsible for 1/3 of total global consumption, the implications are that global spending power is becoming increasingly concentrated amongst the hands of a small group of wealthy Americans.