But the variable that has arguably received the most attention has been consumer spending, specifically how it diverges depending on the demographics in question. The Federal Reserve Bank of New York recently looked at this question through the lens of educational attainment, and the results suggest that, while many young Americans contemplate professional lives that do not require a bachelor’s, the ability to keep pace with the economy is still at least somewhat predicated on one’s level of education.
“Despite the relatively more difficult labor market faced by college graduates in 2025, they are continuing to consume more than nongraduates do at the same or higher rate than they did in the previous few years,” the Fed researchers wrote. “The difference in the trend in retail spending between college graduates and nongraduates is consistent with the story of a ‘K-shaped economy.’”
