Enter the K economy: a few get vastly rich, others limp along or perish
I came across a new economic concept called the K-shaped economy recently, which explains a lot about what’s going on today.
Picture the letter K, one arm pointing up, the other downward. There’s supposed to be a nice symmetry when the two arms cancel each other out. But the real impact of this economy on human lives is not symmetrical at all, quantitatively or qualitatively.
The economic recovery after the Covid-19 pandemic was K-shaped. Some parts of the economy, like high-tech sectors, came out firing on rocket fuel, vastly enriching a small number of people. That recovery is the upward-pointing arm of the K.
But other more traditional parts of the economy such as retail and small businesses didn’t quite recover as well. That’s the downward-pointing arm.
The two arms don’t balance each other. The K-shaped economy is one where economic recovery is unequal – a small number come out roaring, while most others limp along or fall by the wayside.
Thriving during Covid
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