Tracking the K‑Shaped Economy: Who’s Driving Spending?
In recent years, people with higher incomes have increased their spending more than those with lower incomes and the recent growth in retail spending has been mostly due to the high-income households. This pattern extends to incomes within the top of the income distribution as well. This phenomenon is also specific to recent years, not occurring during the pandemic or immediate pre-pandemic period. Reliance on a single segment of the economy has important implications for spending growth and its fragility, as well as for economic vulnerability and policy.
Explaining the K‑Shaped Economy: What’s Behind the Divide?
Related:
A potentially K-shaped economy creates dilemmas for the Fed by Vivekanand Jayakumar, The Hill - 09/12/25
https://thehill.com/opinion/finance/5499218-ai-revolution-job-market/
In recent years, people with higher incomes have increased their spending more than those with lower incomes and the recent growth in retail spending has been mostly due to the high-income households. This pattern extends to incomes within the top of the income distribution as well. This phenomenon is also specific to recent years, not occurring during the pandemic or immediate pre-pandemic period. Reliance on a single segment of the economy has important implications for spending growth and its fragility, as well as for economic vulnerability and policy.
Explaining the K‑Shaped Economy: What’s Behind the Divide?
A potentially K-shaped economy creates dilemmas for the Fed by Vivekanand Jayakumar, The Hill - 09/12/25
https://thehill.com/opinion/finance/5499218-ai-revolution-job-market/