In the US, a wealth boom and a price shock collide

The US is undergoing a significant technological transformation fueled by the rapid growth of the artificial intelligence industry. This AI boom has driven unprecedented investment levels, surpassing those seen during previous economic revolutions like telecommunications and infrastructure development. While the surge in stock market values has substantially increased household wealth across the nation, the benefits of this wealth accumulation have not been evenly distributed.

A staggering 99% of US households have not substantially benefited from the AI market frenzy, with the wealthiest 1% reaping the majority of the gains. In the period between the end of President Joe Biden's administration and mid-2026, only the top 1% saw their share of national wealth grow, while the rest experienced a shrinking portion.

Despite the wealth disparity, overall household wealth did increase by 16.5% from the end of the Biden administration through mid-2026, reaching an additional US$26 trillion. This wealth growth, however, has not translated into a significant improvement in the affordability of homeownership or basic necessities for the majority of Americans who rely primarily on wages for their income.

As the economy continues to grapple with high inflation, the income gap between the rich and the rest of the population remains a pressing concern. While spending on goods and services remains strong, especially among the wealthy, real spending—adjusted for inflation—has only grown at a rate similar to pre-pandemic levels. This inflationary pressure has contributed to a negative perception of the current administration and Republican candidates ahead of the midterm elections.