America’s economy defies gravity — powered by AI and the wallets of the rich

The U.S. economy continues to defy gravity, driven by an AI-fueled investment boom and strong consumer spending among the wealthy. Despite trade tensions, labor shortages, and immigration crackdowns, America’s growth remains the strongest in the G7.

Source Financial Times

But this boom is deeply uneven. The richest 10% of Americans now account for half of all consumer spending, thanks to stock market gains that have boosted their wealth. Meanwhile, lower-income households face rising prices, slow wage growth, and shrinking purchasing power.

Economists warn that this “two-speed economy” could become unstable if AI stocks cool or consumer confidence fades. For now, America’s prosperity is built on AI optimism and elite consumption — a powerful combination, but one that risks collapsing under its own weight.