US EditionHere’s why everyone’s talking about a ‘K-shaped’ economy
Top 10% of Americans hold 87% of stock wealth while lower-income groups face weak wage growth and inflation pressures, raising concerns about economic sustainability.
- The phrase 'K-shaped economy' refers to higher-income households seeing their incomes and wealth rise while lower-income households struggle with weaker income gains and steep prices.
- The term captures differing economic fortunes, like white-collar professionals working from home with rising stock prices during the pandemic versus massive layoffs at other businesses then.
- In 2023 and 2024, inflation-adjusted wages for the bottom quarter of workers rose faster at 3.9% annually compared to 3.1% for the top quarter, research by the Federal Reserve Bank of Minneapolis showed.
64 Articles
64 Articles
From corporate executives to Wall Street analysts and Federal Reserve officials, references to the "K-shaped economy" are rapidly proliferating. So, what does it mean? In short, the top of the K refers to the higher-income Americans who see their income and wealth increase, while the bottom points to lower-income households struggling with weaker earnings and high prices. A great reason why the term is appearing so often is that it helps explain…
Associated Press News
Here's why everyone's talking about a 'K-shaped' economy
References to the “K-shaped economy” are rapidly proliferating. So what does the phrase mean? Simply put, the upper part of the K refers to higher-income Americans seeing their incomes and wealth rise while the bottom part points to lower-income households struggling with weaker income gains and ste
K-Shaped Economy Deepens U.S. Wealth Divide
The term “K-shaped economy” has resurfaced with a vengeance, capturing the stark divergence in economic fortunes between the wealthiest Americans and the rest. This phenomenon is not just a post-pandemic artifact but a persistent reality that is reshaping the U.S. economic landscape. The K-shaped economy describes a situation where different segments of the economy recover or grow at dramatically… Source
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