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Cake day: July 1st, 2023

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  • The top 10% of earners were responsible for a record 49.2% of total U.S. consumer spending in the second quarter of this year, according to Moody’s Analytics.

    But economists warn that relying on a tiny slice of Americans to drive consumer spending could put the U.S. on shaky footing. Consumer spending makes up the lion’s share of the nation’s total economic activity.

    “Whether the economy goes into a recession in 2026 hinges almost entirely on the top 20%,” said Navy Federal Credit Union’s Long. “If they do well, the overall economy does well. If they don’t, then we’re looking at a recession.”

    In the meantime, she said, everyone else could face growing pressure.