American birth rates are falling even as financial markets remain near record highs, according to a recent post shared by The Kobeissi Letter.
The market commentary account cited Kobeissi data comparing U.S. demographic health against rising financial wealth. It said the U.S. birthrate has dropped roughly 30% since before the 2008 Financial Crisis, while financial wealth has continued climbing. The post argued that "only asset owners can afford this economy," pointing to what it described as the largest divergence in history between the S&P 500 and the U.S. birth rate.
The Kobeissi Letter said economic stimulus measures following recessions in 2008 and 2020 accelerated wealth concentration while increasing financial pressure on younger Americans. The post described the trend as another sign of a "K-shaped economy," where wealthier households continue benefiting from rising asset prices while others struggle with affordability.
Wealth Gap
Earlier this year, data shared by The Kobeissi Letter showed that the real wealth of the top 0.001% of U.S. households surged roughly 3,500% since 1976, compared with about 200% growth for the average household. The analysis said a large portion of wealth gains remained concentrated in stocks, private businesses and financial assets.
Larry Fink, CEO of BlackRock Inc. (NYSE:BLK), also warned this month that artificial intelligence could deepen economic inequality by creating a "K economy" with only a handful of dominant winners.
Affordability
Affordability concerns have also intensified across the U.S. A recent JD Power report found that 62% of Americans delayed major purchases due to rising grocery, gas and household costs, while 69% were considered financially unhealthy in April.
The survey also showed that many Americans expect inflation and living expenses to continue rising in the coming months.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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