The K-Shaped Economy’s Defining Statistic Has Some Problems

The defining statistic of the so-called K-shaped economy is a little hard to define.

According to Moody’s Analytics, the top 10% of Americans by income were responsible for 45.8% of consumer spending last year. Before a change in methodology to reflect the impact of taxes, this figure was estimated at 49.2% as of mid-2025, leading to the oft-repeated claim that nearly half of consumer spending was being driven by the top 10%. Put their revised spending and that of the bottom 80% in a chart together, and you can still see something like a “K” emerging over the past couple of years.