Economist Podcasts Suck in the middle: the hole in America’s consumer base
6 snips
May 12, 2023 
Tom Lee Devlin, The Economist's global business correspondent; Fiametta Rocco, senior editor and culture correspondent; and Tom Wainwright, tech and media editor, tackle the shifting landscape of American consumer behavior. They discuss how inflation pushes middle-class shoppers toward budget brands while luxury markets remain resilient. The trio also dives into the transformative role of AI in journalism, weighing its potential benefits against job displacement concerns, and reflects on the importance of marginalized narratives through historical lens.
AI Snips
Chapters
Books
Transcript
Episode notes
Squeezed Middle
- Middle-class consumers, facing financial pressure, are increasingly shopping at cheaper stores.
- This trend benefits discount retailers while squeezing mid-range businesses.
Discount Stores Thrive
- Discount stores like Burlington and Walmart are outperforming mid-range retailers like Macy's.
- Even in other sectors, like fast food, McDonald's saw significant growth compared to mid-range restaurants.
Luxury Market Resilience
- High-end consumers, benefiting from increased asset values, haven't traded down.
- Luxury goods continue to perform well, driven by the spending power of the wealthy.
