K-shaped economy
Coverage of K-shaped economy in the Nexus archive.
- Just how K-shaped is the U.S. economy? The top 10% spend nearly as much, excluding essentials, as bottom 70% combined
The U.S. economy shows a significant disparity where the top 10% spend nearly as much on non-essential items as the bottom 70% combined, according to Bank of America's economists. The analysis highlights a widening wealth gap in household spending patterns.
- Costco CEO promises the $1.50 hot dog isn’t going away: ‘The price will not change as long as I’m around’
Costco CEO Ron Vachris confirmed the $1.50 hot dog and soda combo will remain unchanged, a staple since 1985, with previous executives also assuring its price stability. The deal is seen as a symbol of economic stability amid rising food prices and a K-shaped economy.
- US employers pull back on hiring in June amid elevated inflation, global turmoil
US employers added 57,000 jobs in June, a significant drop from previous months, with the unemployment rate falling to 4.2% due to people leaving the labor force. Hiring in sectors like restaurants, bars, and hotels declined amid inflation and consumer spending shifts, while healthcare added nearly 47,000 jobs. A 'K-shaped' economy, where wealthier households outpace others, and AI implementation concerns may be influencing hiring decisions.
- The richest 20% are the only ones powering the U.S. economy, says top economist, but their prospects are entirely reliant on teetering stock prices
The top 20% of U.S. earners drive 60% of personal outlays, with their spending growth (8.3%) outpacing the bottom 80% (4.5%), as wealth tied to stock market valuations raises concerns about economic fragility. Moody’s chief economist Mark Zandi notes this 'K-shaped economy' persists, with the wealthy benefiting from asset gains while most Americans struggle with affordability.
- K-shaped economy is still ‘firmly intact,’ Moody’s economist says
The K-shaped economy remains 'firmly intact' as high earners drive spending, according to Moody's economist Mark Zandi. The analysis highlights ongoing economic divergence between different income groups.
- You can't afford to have FOMO this summer
The article discusses the K-shaped economy's impact on summer travel, where high earners enjoy luxury trips while others cut back. It advocates for 'satisficing'—accepting local, affordable options—to reduce FOMO and improve mental health and financial well-being.
- Is a K-Shaped Economy Good for China?
The article examines whether a K-shaped economy, characterized by divergent performance across sectors or groups, is beneficial for China. It raises questions about the implications of such an economic structure for the country's growth and stability.
- Is the K-shaped economy real? Cut-price UK retailers should hope not
The article questions the reality of the K-shaped economy, noting that selling goods at rock-bottom prices can be profitable for UK retailers, potentially encouraging middle-tier chains to compete with discount stores.
- Stocks drive record share of American wealth
A record 33% of U.S. household wealth was in stocks by the end of 2025, driven by an AI-driven market rally. However, the wealthiest 10% of households own 87% of this stock market wealth, exacerbating economic inequality and contributing to a K-shaped economy where GDP growth relies on wealthy spending.
- Trump has made our K-shaped economy even worse | Steven Greenhouse
The article discusses the K-shaped economy in Trump's America, where wealthy Americans benefit from a booming stock market while non-wealthy Americans face rising inflation and financial struggles. Trump's policies are cited as a key factor worsening this economic divide.
- Low-income households face ‘remarkable’ rise in food insecurity in K-shaped economy: New York Fed
Low-income households in the U.S. are experiencing a significant rise in food insecurity, driven by a K-shaped economy. The Federal Reserve Bank of New York attributes this trend to growing economic disparities, with many Americans feeling worse off due to the crisis.
- Watches, movies and burrito taxis: How Americans splurge in a vibecession
Americans are splurging on affordable luxuries like movies and collectible watches amid economic anxiety and inflation, sustaining consumer spending despite delayed major purchases. Economists describe this trend as a 'vibecession,' where high-income households maintain discretionary spending while lower-income consumers opt for smaller indulgences.
- Retail’s K-Shaped Economy
The article discusses the K-shaped economy in retail, where high-end and low-end segments perform well while the middle market struggles. This divergence reflects broader economic inequality and changing consumer spending patterns across different income levels.
- K-shaped economy is showing up at the gas pump: NY Fed
Low-income households are reducing gas consumption due to surging prices, while wealthier households remain unaffected. The NY Fed reports a K-shaped economy at gas pumps. This indicates a disparity in spending habits between different income groups.
- The K-Shaped Economy Is Here To Stay Says Homkes
Homkes states that the K-Shaped Economy is here to stay, indicating a permanent change in economic trends. This shift may have significant implications for various industries and individuals. The K-Shaped Economy refers to a recovery pattern where different sectors experience disparate rates of growth.
- K-shaped economy is real, per New York Fed research
The Federal Reserve Bank of New York confirms the existence of a K-shaped economy, where high-income households drive spending growth due to wealth gains from financial assets, while low-income households struggle with inflation. The divergence in spending patterns since 2023 highlights economic fragility and risks linked to market corrections.
- How to prevent the 'K-economy' from becoming more K-shaped
The article discusses strategies to prevent the 'K-economy' from becoming more K-shaped, focusing on economic divergence and potential solutions to mitigate disparities.