As the US economy grapples with uncertainty, the holiday shopping season is shaping up to be a tale of two Americas. On one hand, the affluent and well-heeled are poised to spend big, buoyed by rising average salaries and booming stock markets. From high-end restaurants in upscale neighborhoods like Soho and Beacon Hill, to luxury hotels commanding top dollar, these consumers seem immune to the economic uncertainty.
On the other hand, for those struggling to make ends meet, the outlook is decidedly bleak. The same analysts who warn of a "tale of two economies" point to rising hourly wages below 3% for blue-collar workers, and credit card debt piling up for millions. With many barely scraping by, let alone splurging on holiday gifts, it's unlikely that these consumers will be joining the spending spree.
The numbers back this up. According to S&P Global Ratings, holiday sales are expected to grow 4% in 2025, but only because of price increases, not volume growth. Deloitte's projections are even more muted, with holiday retail sales expected to grow between 2.9% and 3.4%. For small businesses, which rely heavily on holiday sales for up to half their annual revenue, these numbers offer little comfort.
The impact will be felt far beyond the consumer sector, too. As wealth inequality continues to widen, the negative effects of an equity market correction could spread across the entire economy, from staples like groceries to discretionary categories like travel and leisure.
As one analyst noted, "It's a tale of two economies." For those at the top, the economy is booming. But for those struggling to get by, it's a stark reminder that the benefits of growth don't always trickle down.
On the other hand, for those struggling to make ends meet, the outlook is decidedly bleak. The same analysts who warn of a "tale of two economies" point to rising hourly wages below 3% for blue-collar workers, and credit card debt piling up for millions. With many barely scraping by, let alone splurging on holiday gifts, it's unlikely that these consumers will be joining the spending spree.
The numbers back this up. According to S&P Global Ratings, holiday sales are expected to grow 4% in 2025, but only because of price increases, not volume growth. Deloitte's projections are even more muted, with holiday retail sales expected to grow between 2.9% and 3.4%. For small businesses, which rely heavily on holiday sales for up to half their annual revenue, these numbers offer little comfort.
The impact will be felt far beyond the consumer sector, too. As wealth inequality continues to widen, the negative effects of an equity market correction could spread across the entire economy, from staples like groceries to discretionary categories like travel and leisure.
As one analyst noted, "It's a tale of two economies." For those at the top, the economy is booming. But for those struggling to get by, it's a stark reminder that the benefits of growth don't always trickle down.
theres def 2 sides to this holiday shopping season. on one hand, ppl who r doin good are like "bring it on" 
and splurging on fancy stuff 
. they got them high-end restaurants & hotels where its all about luxury life 
, its a different story. hourly wages r like 3% 
, credit card debt is thru the roof 
, and lets be real, ppl dont got the $$$ to splurge 
. its not lookin good for holiday sales, esp with only price increases 
cuz these numbers rnt impressing 
. it could affect everything from groceries to travel & leisure 
️. its just not fair when the benefits of growth dont trickle down 
. Like, on one hand, I get it, people with the means are gonna keep spending like there's no tomorrow 
.
. If hourly wages aren't rising for blue-collar workers, that's a problem regardless of who's spending big on luxury gifts 
. We need to figure out a way to make sure everyone benefits from growth, not just those at the top 
.
4 real, who can afford luxury hotels & high-end restaurants when u cant even pay ur rent? 2025 is gonna be a tough year 4 a lot of peeps 
I mean, what a great time to be in America, right? The haves are getting richer and the have-nots are still trying not to lose their shirts. It's like the country is one big ol' experiment in economic inequality. And let's be real, who needs affordable healthcare or education when you've got a fancy new iPhone 
? The "tale of two economies" is basically just code for "the rich get richer and the poor get poorer". And don't even get me started on the state of credit card debt... it's like people are just trying to keep up with their own expenses at this point 
.
. It's just not fair that some people are so far ahead of others while others struggle to get by 
.
.