The Retail Mirage: How the K-Shaped Economy is Fueling a Quiet Collapse

Retail Sales Are Up — But Who’s Doing the Buying? November 2025 saw a 0.6% jump in retail sales, with “control retail sales”—the kind that feeds directly into GDP—up 0.4%, and overall retail sales now running approximately 3.3% higher than a year ago, signaling surprisingly persistent consumer demand despite broader economic uncertainty. This uneven spending pattern feeds into retail sales inflation, as concentrated demand from higher-income households keeps prices elevated even while wage growth remains weak and many Americans struggle to keep up. Sounds impressive… until you read the fine print: "Today's consumer strength is largely supported by higher‑income households, greater comfort with borrowing, and a willingness to tap into savings to sustain spending habits." — Lydia Boussour, EY-Parthenon Translation:…