The rich get richer and the poor get poorer. That old saying has taken on a new label in 2025: America’s economy is increasingly “K-shaped.”
The term is used to describe when “wealthy consumers do well and spend freely,” while at the same time, folks in lower tax brackets “struggle and scrimp,” said Morning Brew . Evidence of a K-shaped economy is “popping up everywhere.” The richest Americans are now enjoying the fruits of a “booming stock market” and a steep rise in home values, while everybody else is increasingly challenged by a “ shaky job market , high interest rates, and/or inflation.” That could cause “social and political instability,” said University of Michigan economist Betsey Stevenson.
What did the commentators say?
This phenomenon creates ripple effects throughout

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