Recently, I observed a phenomenon worth paying attention to — income inequality in the United States is expanding at an unprecedented rate, and economists generally believe this is not a short-term fluctuation but has become a core characteristic of the U.S. economy.

Moody’s chief economist Zandi straightforwardly stated that this is a structural issue rather than a cyclical one. Their data shows that the Gini coefficient, which measures wealth concentration, has risen to a 60-year high, indicating that the brief equalization trend during the pandemic has been completely reversed.

The specific data looks quite alarming. The latest Federal Reserve statistics show that the wealth held by the top 1% of Americans has reached nearly 32%, a historic high, while the combined wealth of the bottom 50% accounts for only 2.5% of the national total. Behind this worsening Gini coefficient lies a deeper problem — ordinary workers are getting a smaller slice of the economic pie as the country grows. Data from the U.S. Bureau of Labor Statistics indicates that the share of GDP allocated to employee compensation has fallen to its lowest level in over 75 years.

This polarization directly changes consumer behavior. High-income households (annual income over $150k) are increasing their spending on travel and experiential purchases, while low-income households (annual income below $75k) are reducing their spending on these non-essential items. More strikingly, a report from Bank of America shows that total spending by the top 20% of consumers has reached a multi-decade high, while the remaining 80% have hit a historic low. Zandi pointed out that over the past six years, this 80% of ordinary consumers has not kept pace with inflation in their overall spending, meaning their standard of living is actually regressing.

The root of this K-shaped economy can actually be traced back decades. Economists believe that starting from the economic restructuring of the 1980s and continuing through the 2008 financial crisis, this polarization gradually evolved into what we see today. The collapse of the housing market led to wealth erosion, and declining unionization weakened workers’ bargaining power. These factors combined to create a winner-takes-all landscape.

The pandemic accelerated this process. Since 2020, the S&P 500 has risen over 130%, and since high-income groups hold a much larger proportion of stocks than the general public, they have benefited the most from the stock market rally. Although low-income groups saw some wage increases early in the pandemic due to stimulus policies and labor shortages, by last year, high-income earners’ wage growth had begun to outpace theirs.

Interestingly, this phenomenon also explains why politicians focusing on “livable wages” have gained prominence in elections — whether it’s Trump or other political figures, this issue has become a vote magnet. A survey from the University of Michigan shows that by 2025, the confidence gap between high- and low-income groups regarding their financial situation has widened to its largest in over a decade.

Looking ahead, the situation could worsen. Trump’s “Build Back Better” bill, which cuts benefits like Medicaid and food stamps, will further deepen economic polarization. Meanwhile, the development of artificial intelligence may lead to more layoffs — U.S. corporate layoffs are projected to surge over 50% year-over-year in 2025.

Interestingly, even Federal Reserve Chair Powell last December said that making high-income groups the main drivers of consumption is “a question worth pondering.” Steifel’s chief equity strategist bluntly stated that this economic model “is not sustainable at the macro level.”

Zandi’s summary is particularly sobering: the current U.S. economic growth mainly relies on job growth in healthcare, the rally of large-cap tech stocks, and consumption driven by high-income groups. These three pillars seem fragile — if one collapses, the entire economic system could face risks. From this perspective, the continuous deterioration of the Gini coefficient is not just a number but reflects that the foundation of U.S. economic growth is becoming increasingly unstable.