The U.S. economy, despite official data indicating robust performance and stable inflation, is experiencing a growing wealth gap that has become increasingly pronounced in recent years. High-income households, those earning around $153,000 annually, have emerged as the primary drivers of consumer spending, fueling much of the nation's economic growth. This shift has created a stark contrast between the affluent and the rest of the population, who are facing mounting financial challenges.

Lower-income households, particularly those earning below $73,000 per year, are struggling to maintain their purchasing power. Many rely on credit cards to bridge the gap, but this comes at a cost. Interest rates on these cards remain high, often exceeding 20%, making it difficult for consumers to manage their debts. Consequently, delinquency rates on consumer debt have surged to levels not seen in nearly five years. The Federal Reserve Bank of New York reports that the share of credit card accounts with delinquencies of at least 90 days overdue has climbed to over 11%, a significant increase from pre-pandemic levels.

The widening income divide has also impacted credit scores. While the wealthiest consumers continue to see record-high credit scores, the number of individuals with lower scores is rising. Nonprime borrowers, in particular, are experiencing heightened distress, with both default rates and debt levels increasing at a faster pace than the overall population. Despite these concerning trends, some experts remain cautiously optimistic. David Sojka, a senior adviser at Equifax, notes that while delinquency growth has slowed, consumers are becoming more cautious in their spending habits, managing their finances more carefully relative to their means.

However, the reliance on credit cards for everyday expenses continues to weigh heavily on financially strained individuals, leading to higher utilization rates and increased defaults. Economists warn that this trend reflects underlying consumer stress, with many Americans finding it increasingly challenging to balance their spending with their financial capabilities. The disparity in spending power underscores the need for policies that address economic inequality and support vulnerable populations, ensuring a more resilient and inclusive economy for all.