The “K” economy – The daily blog of behavioral and cognitive economics

What the Alphabet Says About the Economy

The alphabet can be a handy way to describe the economy. The 1953-1954 recession was a “V”. From a peak, economic activity plunged and then picked up again:And now, we seem to have a “K.” Composed of close to 68 million people, the top income quintile is doing the spending. Meanwhile, the 280 million (or so) in the bottom 80% are stressed. As a result, we depend on a relatively small slice of the spending pie to sustain prosperity. We have the wealthiest 10% doing 50% of all retail spending ….[READ]