A K-shaped corporate economy is a situation where people experience different economic outcomes. Picture the letter K. The CEO and executives at the top move upward growing wealth, stock gains, and increasing income. At the same time, employees affected by layoffs and reductions move downward — struggling with living costs, debt, unemployment, and dwindling savings while paying bills with no income.
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@g6 The left part of the letter K represents the Y axis. The phenomenon discussed is also called the scissors effect.
Driven by a booming stock market and rising real estate values, the top 1% of Americans hold nearly 32% of all net wealth, while the bottom 50% hold roughly 2.5%.
I am thankful the higher ups were able to achieve their bonuses and shareholders doing nothing got their dividends by laying people off. This is the kind of society we can all rejoice in! I am energized and excited to celebrate the efficiencies and the impact Verizon has on our communities and how we work, live and play. Let’s go team!!!
@g6 Whoop whoop.
This is the Literal Police.
Please pull over to the side of the thread, figuratively that is.
You literally have a literal problem that may be causing issues with your understanding of things.
Again , it's not shaped like a K . The left part of the K doesn't move on the x-axis, so it is saying that wealth went up and down while time stood still , which doesn't make sense. It is closer to Inverted an V than anything else. But that is also wrong because it shows both legs diverging from the same point. Which makes no sense because it is saying that wealth is increasing for the wealthy and decreasing for the poor, but they both started out with the same amount of wealth.
@e7 Look at the letter K. Do you see a top or a bottom without a middle to connect them in the letter K?
No customers, no top or bottom. Does it make sense now?
@cf Look at the letter K. Do you see a middle in the letter K?
No middle class. Does it make sense now?
@OP US has been a K shaped economy for a while.
Check the statistics on how the ratio of average CEO pay to average employee pay has changed over the last 50 years.
Year | CEO-to-Worker Ratio
1965 | 21 to 1
1978 | 31 to 1
1989 | 60 to 1
2000 | 380 to 1
2024 | 281 to 1
2025 | 325 to 1
Historical Growth (1978 vs 2025):
• CEO Compensation: +1,316% (Average $27.9M)
• Worker Compensation: +28%
The term "K shaped economy" makes no sense.
@a8 And the customer gets pinched in the middle.
1000% accurate. Reverse robinhood.
True
Of course they are. One of the biggest reasons IMO is that they are all funneling billions into stock buybacks. Those profits certainly aren't trickling down now days....