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This year’s US Open features a unique culinary experience: $100 chicken nuggets from the famed Coqodaq, complete with a side of caviar. It’s the latest sign of late stage capitalism that high-income consumers are doing just fine, even as the rest of America tightens its purse strings.
Data from Moody’s earlier this month revealed that the top 20% of earners are responsible for over half of consumer spending across the US, while spending among middle class and low-income Americans has slowed. That matters because consumer spending accounts for two-thirds of GDP, so as long as those high-income Americans keep shelling out for fast food and fish eggs, the economy should be OK.
While consumer spending shrank to its lowest level since the pandemic back in Q1, it has broadly improved in the months since (more on that below). But the fact that it’s mainly top-earning Americans who are keeping their wallets open indicates that the recovery is uneven.
In other words: the folks mixing chicken nuggets and caviar are keeping the economy going, even as some people choose to eat a kid’s meal to save a buck. Maybe after the US Open those big spenders should visit Lincoln Financial Field over in Philadelphia, where the Eagles are now charging an exorbitant $18.50 for a 16 ounce beer—well above the NFL average of $10.75.—MR