Interesting stats in this New York Times piece showing that 60% of consumption is made by the highest 20% in income. So the top 20% generate more consumer spending than everyone else combined – by a wide margin. The top 5% in income generate almost 40% of consumption!
Obviously, spending for the top 5% is basically all discretionary whereas spending for the bottom 80% is majority non-discretionary. So the wealth effect has become magnified and economic growth should experience greater variability.
Also, of course, as the article lays out, any businesses targeting the middle class are getting crushed.