US Economy’s Strength Hinges on How Much the Rich Spend

Shoppers on Rodeo Drive in Beverly Hills.

Photographer: Eric Thayer/Bloomberg

Just how K-shaped is the US consumer?

The idea that spending by rich Americans is driving an ever greater share of economic growth, while people on the low end pull back, has become a staple of economic research and corporate planning. Some analysts push back — arguing that the trend has been exaggerated, or even made up completely.