The Future of Commerce Podcast

Let them eat (egg-free) cake: As consumer sentiment sinks amid layoffs and inflation, the wealthiest 10% drive economy

Episode Summary

Consumer sentiment is plummeting as inflation, layoffs, and economic uncertainty reshape spending habits across the U.S. In this episode, we break down the key insights from Let Them Eat (Egg-Free) Cake: As Consumer Sentiment Sinks Amid Layoffs and Inflation, the Wealthiest 10% Drive Economy. We explore who is feeling the squeeze, why even fast food is becoming a luxury, and how businesses are adapting to shifting consumer behavior. While the top 10% of earners continue driving nearly half of all spending, middle- and lower-income consumers are cutting back dramatically. What does this mean for the broader economy? Will inflation ease, or are we heading toward further instability? Tune in as we unpack the winners, losers, and survival strategies in this volatile economic landscape.

Episode Notes

The U.S. economy is at a tipping point, with consumer sentiment dropping 27% year-over-year—a decline usually seen during major recessions. Inspired by Let Them Eat (Egg-Free) Cake: As Consumer Sentiment Sinks Amid Layoffs and Inflation, the Wealthiest 10% Drive Economy, this episode unpacks how inflation, corporate layoffs, and changing spending habits are creating a stark economic divide.

Fast food is no longer cheap. Luxury spending is dropping. Even big-box retailers like Costco are feeling the pinch. But at the same time, the top 10% of earners are still spending freely, keeping certain sectors afloat while the rest of the economy slows down.

Join us as we discuss:

• Why consumer confidence is collapsing—and how it’s shaping economic trends.
• How businesses are adjusting to lower spending and rising costs.
• What workers and individuals can do to navigate job uncertainty, inflation, and wage stagnation.

Is the economy heading for a soft landing or a deeper downturn? Let’s dive in.

What You’ll Learn in This Episode:

1. The Widening Gap in Consumer Spending

• The top 10% of earners drive nearly half of all U.S. spending, while 65% of Americans live paycheck to paycheck.
• How inflation is affecting different income groups—from discount shoppers to luxury consumers.
• Why companies like McDonald’s and Costco are feeling the effects of economic stress.

2. The Role of Inflation, Layoffs, and Wage Stagnation

• Consumer sentiment has dropped 27% year-over-year—a level typically seen during recessions.
• Corporate layoffs are rising, even as companies report strong profits.
• Why many workers aren’t seeing wage increases despite inflationary pressures.

3. How Businesses Are Adapting to the Economic Slowdown

• The importance of customer retention and loyalty programs as spending tightens.
• Why supply chain agility and automation are crucial for survival.
• The role of technology in helping businesses manage economic volatility.

4. Survival Strategies for Consumers and Workers

• Financial planning tips to weather economic uncertainty.
• How to identify in-demand skills to increase job security.
• Why small spending changes—from budgeting to strategic purchases—can make a big difference.

Key Takeaways:

• Consumer sentiment is at crisis levels, affecting spending across industries.
• Inflation is changing how Americans shop, from smaller grocery purchases to avoiding once-affordable fast food.
• Businesses need to prioritize efficiency, customer retention, and supply chain stability to navigate uncertain times.
• Workers should focus on skill-building and financial planning to remain resilient in a volatile job market.

Subscribe to our podcast for expert insights on consumer trends, economic policy, and financial planning. Visit The Future of Commerce for the latest research on how inflation and layoffs are reshaping spending behaviors. Share this episode with business leaders, professionals, and anyone navigating today’s uncertain economy.