The Rise of the K Economy

The article points out that the "K-shaped" economy illustrates how wealth is increasing rapidly among the rich, while the middle class and low-income families are experiencing decline or stagnation. It shows that the wealthy are benefiting from rising stock and real estate values and investment returns, while the middle class faces difficulties due to rising prices, stagnant wages, and challenges in homeownership. This leads to the erosion of the middle class and the widening of the economic gap. This model traces back to policies such as globalization, tax cuts, and weakened unions, which have contributed to reallocating a portion of income toward the wealthy since the 1980s. By 2025, the rich's share of the wealth reached about 68%. Meanwhile, the middle class's share decreased from 61% in 1971 to 51% in 2023, with increased reliance on debt, inflation, and higher living costs—factors that deepen the divide and threaten economic and social sustainability.

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