While the news is reporting a booming economy, many Americans are struggling to stay afloat. How is it possible to see economic growth when much of our population continues to live check to check? Economists believe the boom we are experiencing can be credited to high-earning consumers who have been on a shopping spree. They’re also concerned by the extreme inequality they’re seeing among income groups.

Historically, our country thrives when the wealthiest among us thrive. Stock returns were at a peak in 2025 and so were real estate values. The economy is booming because people who thrived in ’25 have been spending some of their profits. We all know when the stock market does well the rich get richer. To explain just how well some investors have done this year, Forbes published a story on 10 billionaires who collectively realized a net worth increase of $730 billion. Most of the billionaires highlighted in the story profited from investing in AI related tech stocks. Six of those billionaires are from the U.S. 

Our economic boom is referred to as K-shaped which is causing financial experts to be concerned. Higher-income earners are spending while everyone else cuts back. The wealthy are living well beyond their wildest dreams while most Americans are struggling to make ends meet and wondering how they’ll pay for health care. That’s a K-shaped economy. Financial experts refer to an economy like ours as a ticking time bomb. What happens next remains to be seen.