Talk of America’s ‘K-shaped’ economy is spreading, but it’s not just among the people who are disadvantaged — the people who benefit most are worried about its implications, according to an article by the Associated Press.
The K’s upward stroke refers to the upper income people whose incomes keep rising in the current environment.
By contrast, the downward stroke in the K represents people of more modest means who are struggling to get ahead — even in an economy where the stock market is soaring and growth is solid.
The factors driving this disparity, now reflected in lower consumer confidence, include inflation, slow wage growth, weaker job growth and lingering concerns about affordability.
“Those at the bottom are living with the cumulative impacts of price inflation,” Peter Atwater, an economics professor at William & Mary in Virginia, said in the article. “At the same time, those at the top are benefiting from the cumulative impact of asset inflation.”
It might also help explain why the popularity of capitalism has slipped to about 54%, according to a recent Gallup poll.
