Moody's Analytics chief economist Mark Zandi has warned that America's economic divergence remains "firmly intact," as newly updated data reveal a financial reality where the bottom 80% of earners are losing the battle against inflation, while top earners dominate national consumption.

According to Zandi’s updated estimates, households in the top 20% of the income distribution—defined as those earning over $175k annually—now account for an "astounding nearly 60% of outlays." Driven by a robust 6.5% surge in personal spending over the past year, this affluent segment is single-handedly "driving spending and the economy" well ahead of the current 2.7% CPI inflation rate. Meanwhile, outlays for the bottom 80% of Americans grew at just 2.6%, meaning the vast majority of consumers "fell short of inflation."

The Spending Divide Deepens

Zandi noted this data presents an "overwhelming case" that the financial system is becoming "increasingly" unequal, leaving "most Americans… upset with their financial situations."

A 'Lopsided' Economic Background

This economic data underscores a widening political rift over wealth distribution. Rep. Ro Khanna (D-CA) recently amplified these frustrations, sharply slamming elite defenses of what he described as an "unfair and lopsided economy." Khanna highlighted a grim milestone tied directly to these financial pressures, noting that "nearly 80 percent of Americans believe the American dream is dead" while billionaires hold outsized historical wealth.

Khanna called for an urgent shift toward "patriotic capitalism, instead of an extractive capitalism" to protect the foundational working class. He pointed out that while the capital class builds fortunes, essential workers like nurses, teachers, and firefighters "can’t afford to even buy a house." Khanna warned that an entire younger generation now feels "forsaken" by an uneven system where a billionaire’s influence skews public laws, leaving the bottom 80% squeezed out.

Market Performance in 2026

The S&P 500 index has advanced 9.36% year-to-date. Similarly, the Nasdaq Composite index was up 14.13%, and the Dow Jones gained 6.58% YTD. The SPDR S&P 500 ETF Trust (NYSE: SPY) and Invesco QQQ Trust ETF (NASDAQ: QQQ), which track the S&P 500 and Nasdaq 100, respectively, closed higher on Thursday. The SPY ended up 1.04% at $746.74, while the QQQ advanced by 2.51% to $740,62. Meanwhile, the Dow tracker, State Street SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA), closed 0.12% higher on Thursday.

Trump has sharply criticized Italy on Truth Social, accusing the country of refusing to get involved in the Iran nuclear threat despite decades of U.S. defense spending on NATO. Trump stated that Italy was not there to defend the United States and the rest of the world when tested, marking a pointed rebuke of Italy's stance on one of the most pressing geopolitical security issues.

Trump's Criticism of Italy on Truth Social

Trump's remarks were directed specifically at Italy's refusal to engage on the Iran nuclear threat, framing the country's absence as a failure of collective defense responsibility. The statement highlighted what Trump characterized as a lack of reciprocity from Italy, given the substantial U.S. investment in NATO over decades.

The remarks underscore growing tensions over burden-sharing within NATO and the expectations placed on allied nations to contribute to collective security efforts, particularly in response to threats such as Iran's nuclear program.