The “K-Shaped Economy” Narrative — And Why It Matters The mainstream line has been simple: Wealthy Americans are propping up consumer spending while lower-income households are pulling back. A “K-shaped” recovery — one line up, one line down. Now comes the counterpunch. Some economists argue the K-shaped story has outrun the data. The top 20% of households still account for about 40% of consumer spending — just like they have for decades. The bottom 20% still account for roughly 9%. No dramatic shift. No explosive divergence in spending share. On the surface, that sounds reassuring. But if you’ve spent years watching how monetary policy distorts markets, you know better than to stop at spending percentages. Because the real question isn’t:…
Continue reading as a Citizen
Dedollarize News is free to read for signed-up members. Become a Citizen to finish this article, save what matters, and get the daily “While You Were Distracted” briefing.
No credit card required.
