American consumers continue to spend despite persistent pressure from housing costs, debt and everyday expenses. Economist Ed Yardeni describes this phenomenon as a G-shaped economy, reflecting a generational divide rather than the well-known K-shaped pattern opposing rich and poor. Baby boomers, who are living longer and healthier, are drawing on their investments, retirement savings and home equity to maintain their spending levels. According to the Federal Reserve, the inflation-adjusted median net worth of households headed by someone age 75 or older increased by 37% between 2022 and 2025, while that of households under age 35 declined by 23%. This trend is likely to become an increasingly important factor in understanding the U.S. consumer economy.
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