For years, economists used the term "K-shaped economy" to describe what happened after the pandemic wealthier Americans drove much of the nation's spending while lower-income households struggled with rising prices. New data su ggests the gap between those groups may be narrowing, though economists disagree on what is really behind the shift.Higher-income Americans spent heavily on travel, housing, and luxury goods just a few years ago, while many lower-income households struggled with inflation and rising costs.Brandon Zureick, senior managing director at Johnson Asset Management, said the data shows signs of convergence, but cautioned against reading too much into it.RELATED STORY | Wall Street rallies to records, pushing SP 500 up 1.8%, as profits pile up and oil prices ease"The difference between high- and low-income spending and high- and low-income wage growth is starting to converge but ultimately, higher-income consumers are still driving the lion's share of consumer spending," Zureick said.Author and economist Rhonda Vonshay Sharpe says the numbers may not tell the full story."So debit and credit purchases are lumped together, which means you can't tell when people are using their cash and when they're leveraging their credit," Sharp said.Sharp says many households may simply be relying more heavily on credit cards or "buy now, pay later" services to maintain spending.Meanwhile, Zureick says wealth inequality remains significant even if wage growth begins to look more similar."The difference between wealth accumulation at the upper and lower end is still very stark," Zureick said.RELATED STORY | US economy stumbles with July job losses and sticky inflationEconomists say inflation remains a key concern especially if wages stop keeping up with rising prices."Increasing gas prices, food prices, and not knowing when your next raise is coming makes everybody nervous and uncomfortable," Sharp said.Economists say whether this shift lasts may depend on inflation, wages, and how much Americans continue spending in the months ahead. ...read more read less