Economists are questioning the K-shaped economy narrative

Economists are questioning the K-shaped economy narrative

The K-shaped economy — wealthy Americans propping up consumer spending while poorer consumers increasingly pull back — has become the economic consensus. One big problem: Some economists warn that the narrative has outrun the data supporting it.Why it matters: The narrative has seeped into how CEOs explain spending patterns and how economic policymakers think about risk. Getting this wrong may make the economy look more resilient than it is, with less of a shock absorber than previously believed...

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