- The imbalance in the distribution of capital across countries leads to a deterioration in the lives of ordinary citizens.
- This is driven by the hype around artificial intelligence and the policies pursued by central banks.
For nearly two years, frenzied interest in artificial intelligence and technological productivity has pushed capital markets to speculative extremes. As a result, massive investments in corporate infrastructure have driven valuations to incredible levels. However, behind this apparent success may lie a rather fragile structure.
Tech executives and macroeconomic policymakers often claim that these enormous valuations reflect systemic efficiency. However, reality shows that productivity gains don’t trickle down to the rank-and-file. Companies often use technological innovations to justify drastic cost-cutting measures and layoffs, driven solely by inflation and margin pressure.
This phenomenon is not limited to any sector or country, and represents macroeconomic pressures in which capital is concentrated in small circles while the basic consumer economy experiences shortages.
USA: The Illusion of Stability for Ordinary Citizens
In the United States, despite high employment rates, middle- and low-income families are suffering from rising costs of living. On paper, the main data Consumer price index (CPI) inflation may be showing signs of slowing, but the cumulative impact of the post-pandemic inflation spike has permanently altered the price structure of essential goods, housing, and insurance.
The typical American family is experiencing a hidden decline in wealth. To maintain standard living standards, retail consumers are increasingly turning to credit cards and “buy now, pay later” models, leading to extremely high levels of consumer debt. The wealth effect created by rising stock prices is largely concentrated among the upper classes, while the majority of the population is forced to cope with stagnant real wages that fail to cover rising costs.
Now only 10% of Americans prevent the collapse of the entire US economy, namely, 28 million people provide 49% of all American consumer spending. The remaining $221 million accounts for only 37%.
This is the highest concentration of consumer spending in US history.
Every 1% increase in the stock market increases consumer spending by 0,05%, and this year, markets have grown by double digits. The entire consumer economy now depends directly on the daily closing price of the S&P 500.
The lowest 80% of the population can no longer afford to contribute. Total household debt has now exceeded $18 trillion, with credit card debt reaching a record $1,2 trillion. Low-income households are forced to borrow solely to cover basic expenses, as prices have risen by 25% since 2020.
At Deloitte forecastthat a 10% stock market correction would lead to a drop in real consumer spending growth to 0,2% in 2027 and 1% in 2028.
The 28 million people who keep this economy running are involved in the stock market.
Russia: Rising military spending and inflation
A parallel, yet politically distinct, manifestation of this global impoverishment is occurring in the Russian economy. Due to high military spending, the country’s GDP growth creates the appearance of resilience to international sanctions. However, this economic model has led to serious structural imbalances.
Large injections of liquidity into the defense sector have triggered strong domestic inflation, outpacing wage growth in almost all civilian sectors. The cost of basic consumer goods, imported products, and everyday services within the country has risen sharply. Citizens are forced to spend a significantly higher percentage of their income. your income to the necessary minimum.
In 2025, Sberbank’s “Money Until Payday” service took advantage 1,1 million people. In April alone, 2,3 million applications were submitted, and the average loan amount was approximately 9 rubles (approximately $127). This is currently enough to cover groceries, utilities, or the next loan payment.
This confirms the thesis that whether the economy is based on Western financial capitalism or on a state-controlled model, the end result for the population is the same: the loss of real economic autonomy and a steady decline in living standards.
Editorial Analysis: A Look Happy Coin News
Over the years of work in Happy Coin NewsIn my analysis of financial developments, I’ve observed numerous market cycles and how macroeconomic stress directly impacts digital asset markets. There’s no point in focusing on isolated regional recessions right now, as we’re witnessing a global decline in quality of life.
The main link between the struggling middle class in the United States and the inflation-plagued citizens of Russia is the systematic devaluation of fiat currencies. As long as central banks and government treasuries prioritize preserving nominal asset prices and institutional liquidity over stabilizing the real purchasing power of households, the global trend toward impoverishment will continue.
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