Source: NYT > Business (paywall)
The gap between wage growth and asset appreciation is reshaping consumer psychology: workers watch their purchasing power erode while tech founders and investors accumulate unprecedented wealth. This directly shapes behavior—spending hesitation, skepticism about discretionary purchases—and creates real pressure on brands betting on discretionary consumption and premiumization. AI-driven job loss anxiety compounds the effect, making consumers less willing to trade up or spend on experiences, even as nominal incomes technically rise.