The US Wealth Divide is Getting Much Worse | WORLD BUSINESS WATCH

Added: 2026-06-03

[00:00:00]And now, let's talk about the American economy. Well, the rich are getting richer in America and the poor are getting poorer.

[00:00:07]And the middle class is getting squeezed out.

[00:00:10]New data paints a stark picture of the US economy under the Trump administration.

[00:00:16]The wealthiest Americans are seeing their fortunes grow. They are spending freely and their financial position is improving.

[00:00:23]But for the bottom 80% of Americans, the story is very different. Inflation is eating into their wealth. Prices remain elevated while wages are not keeping pace.

[00:00:35]Millions of households are being forced to cut back on spending, sometimes drastically.

[00:00:41]The numbers tell the story clearly.

[00:00:44]Personal incomes in the United States fell in April. This is after adjusting for taxes.

[00:00:50]Americans are taking home less money in real terms. That is a significant warning sign.

[00:00:57]The savings rate dropped to just 2.6% in April. That is one of the lowest readings in 20 years.

[00:01:04]The only comparable period was the post-pandemic revenge spending boom of 2022. But that was driven by pent-up demand.

[00:01:14]While Americans are still spending, they are doing it by draining their savings.

[00:01:18]They're not earning more. Americans are simply spending what little cushion they have left.

[00:01:23]Economists warn this is not sustainable.

[00:01:26]When savings dry up and incomes fall, consumer spending, the engine of the US economy, cannot hold up for long.

[00:01:33]A reckoning could be coming. The divide is growing. Two Americas are emerging.

[00:01:37]One is thriving while the other is surviving.

[00:01:40]And right now, far more Americans belong to the second group than the first.