household budgets

On top of the infamous “K shape” between high- and low-income households, economists also see a widening spending gap between high- and middle-income consumers.

The rebound from pandemic deprivation continues, says Adriana Samper of Arizona State, and the reasoning can get pretty creative.

It’s like comparing apples and oranges, professor Golnaz Motie says, because the government has many more tools and huge immediate obligations.

The Federal Reserve reports the net worth of U.S. households dropped 3.4 percent in the fourth quarter of last year and is now at the lowest level since the financial crisis. A look at what that drop could mean for economic optimism.  Click the audio player above to hear the full story.