- Oxford Economics reports a growing divide in the U.S. economy, with older, wealthier households thriving while younger and lower-income consumers struggle. Tariffs and fiscal policies disproportionately benefit higher earners, while SNAP and Medicaid cuts hit low-income households. A tightening labor market, longer unemployment spells, and smaller firms shedding jobs exacerbate the gap, leaving younger consumers under pressure. Overall spending is being sustained primarily by wealthy households, highlighting the economy’s dependence on their continued consumption.
If you’re struggling to find a job, get a promotion, or shop the way you used to, you’re not an anomaly. In fact, you’re on one side of a “bifurcated” economy where wealthier, older people are fairing markedly better than their younger counterparts.
