In case you’re not familiar with the concept of the K-shaped economy, it’s an important idea that captures a lot about Trump’s America. Wealthy Americans are represented by the line of the K that angles sharply upward to the right, while the line of the K that dips downward represents non-rich Americans and the difficulties they face.

The economy’s K-shape has been growing worse in recent months, in large part because of Donald Trump’s policies. The wealthy people’s line is climbing further upward, while the line for the non-wealthy – the vast majority of Americans – has fallen further.

Viewed another way, the K-shaped economy is all about income and wealth inequality, and those are growing palpably worse under Trump.

For the country’s wealthy, things are going gangbusters as the S&P 500 and other stock indices keep hitting record highs, notwithstanding Trump’s costly, unsuccessful war against Iran. The richest 10% of Americans own 93% of all stock held by US households, and that means millions of average Americans aren’t feeling Wall Street’s rise – although they’re very much feeling inflation’s rise as it has climbed to nearly 4%, as hourly earnings fail to keep up with rising prices and as gas prices have jumped about 50% since Trump began bombing Iran. What’s more, workers’ hourly pay has risen by a mere 3% since 2019 (after adjusting for inflation), while corporate profits have jumped by 50%.

It’s a tale of two Americas. When some people look at the economy, they see a booming stock market, low unemployment, consumer spending chugging along and friends jetting off to overseas vacations. But those on the bottom end of the K see something very different: rising inflation, a sluggish job market, sky-high gas prices, problems with affordability and friends struggling to make ends meet. One big reason that consumer spending hasn’t tanked is that the richest, we’re-doing-just-fine 10% of Americans........

© The Guardian