K-shaped economy: Why the wealthy are thriving as most Americans fall behind
Posted by laxnut90@reddit | collapse | View on Reddit | 91 comments
Posted by laxnut90@reddit | collapse | View on Reddit | 91 comments
Cool-Contribution-68@reddit
I mean, it’s like the Occupy Wall Street folks were right all along…
Templar388z@reddit
I remember watching a video where they’re protesting meanwhile the rich fucks were sipping cocktails and laughing at the protesters from their balcony.
Laurabengle@reddit
If that was a scene in a movie, bed things would soon happen to the folks on the balcony!
WageSlavePlsToHelp@reddit
I mean, it's like the communists, socialists, etc were right all along...
soulstaz@reddit
It's a shame that Chernobyl happen and bankrupted the URSS. There's a lot a reason to be critical of the way URSS was being govern but it created completion for capitalism. After the collapse, we saw the "victory" of capitalism and am acceleration of monopoly being form and creating more and more economic inefficiency.
The system envisioned by Smith was never built around giant corporations but by multitude of small businesses competing against each other.
The systemic competition that the URSS was providing was a net benefit for capitalism since it was pushing the system to create higher value for middle class in order to prove that the system was better.
JackBlackBowserSlaps@reddit
Lol pretty sure there were exactly zero people looking at USSR and thinking: ya! Thats the way to go! Communism is great in theory, but has failed spectacularly in practice. Always due to the human factor.
Betty_Boi9@reddit
yeah communism blows, it only managed to kill of a few million people. rookie numbers
capitalism killed and is killing 100 millions plus people and more. once it really get going all life on earth.
the strongest system there is!
Minimum_Freedom_1999@reddit
It fails at the state level (in which case it is not but "communism" or Marxism, but, rather, Leninism, Stalinism, or some variant), and certainly across a geographic space as large as the former USSR, because it is challenging if not impossible to efficiently and expediently allocate resources through centralized control in response to rapidly changing market and social conditions; communism works just fine in a more decentralized, localized version (e.g., European communes, early kibbutzim). So it has little to do the inherent logic of communism.
La_Hyene911@reddit
Occupy was cluster fuck , a large movement but with no coherent message. FFS Tim Pool is a product of occupy. It acheived nothing, possibly the dumbest mass protest movement ever.
ParisShades@reddit
The movement was infiltrated and sabotaged from the inside and Tim Pool is a Russian asset. He was never down for the cause.
La_Hyene911@reddit
The movement could never articulate a position.. every freak with a grievance joined it was just venting, never had any clear achievable goals.
La_Hyene911@reddit
LOL timcast bros in the house
rematar@reddit
Liquidate Wall Street from the comfort of your home.
laxnut90@reddit (OP)
Many economists are becoming worried about a "K-Shaped" economy in which the benefits of economic growth increasingly go to those already at the top, while those on the bottom are left behind.
The top 10% account for 50% of economic activity.
Meanwhile, the bottom 80% account for less than 20% of economic activity.
Many businesses are responding to this trend by focusing on luxury goods and premium experiences which are targeted to the top 20% who account for roughly 80% of consumer spending.
Fewer than 25% of Americans believe they have a chance of improving their standard of living, a record low.
Crash_0veride@reddit
Income Group Estimated Share of Total PCE (2023) Notes Bottom 20% (lowest quintile) ~10-12% - Heavily weighted toward essentials like housing and food. Second 20% ~12-14% - Similar to above, with some discretionary spending. Third 20% ~14-16% - Balanced mix of needs and wants. Fourth 20% ~16-18% - Higher discretionary (e.g., travel, dining). Bottom 80% (sum) ~52-60% - Aggregates to majority of economy; varies slightly by year/method. Top 20% ~40-48% - Drives luxury and investment-related spending.
Sources and Methodology Notes: BLS prototype data (2000–2023) allocates PCE by equivalized household expenditures (adjusted for size). Shares sum to 100% and align with BEA national PCE totals (~$19 trillion in 2023). A 2019 BLS presentation (preliminary estimates) showed the bottom quintile alone at ~23.5% of PCE when equivalized, but full quintile breakdowns average ~50% for the bottom 80% in recent years. Moody's Analytics (2025 update) estimates the top 20% at ~40-45% of PCE, implying ~55-60% for the bottom 80%. This uses Fed Survey of Consumer Finances data, focusing on after-tax income groups.
TheMazzMan@reddit
Do you have a source for Moody's PCE numbers? Because I thought they were the ones pushing the 10% have 50% of PCE?
filmguy36@reddit
there are two forms of justice in this country, one for rich and the other for the poor. We can also add to that two types of economy
FieldsofBlue@reddit
Yeah it's literally gonna be hunger games soon where the ultra wealthy live a completely different life than 99.9 percent of the world. The wealthy already basically dictate what bills become law. The last shred of political power average people have is voting, and they're planning to take that away as well. Then we'll be serfs in the truest form.
cheerfulKing@reddit
The French popularized a good invention for fixing society.
ashu1605@reddit
one could say it was revolutionary
BannedSvenhoek86@reddit
Recent events and reactions have proven we are not ready as a society for that. Yet.
The slow slide will continue until something critical to our daily lives snaps. Once water and food become scarce you'll see lamp post decorations, until then people will keep going about their daily lives as best they can while complaining but doing nothing beyond voting.
commesicetaithier@reddit
No, this is a cope. People either act now or never. With this level of surveillance, there's no resistance. Do you see Russia revolting, anyway? They're being fucked over by oligarchs even more that what is soon coming to the US.
What will happen is mass concentration camps, now called "wellness camps". Part of population will eagerly join the police state, then robots will come and exterminate the poor.
Minimum_Freedom_1999@reddit
Leaked radiation would only affect organisms with a high metabolism and long life (= humans). The earth will be fine in a few 10,000 years in our absence.
KlicknKlack@reddit
This is the ultimate issue that is not often talked about in these discussions; If the modern media apparatus doesn't show the revolt, does it exist? If they don't show a protest or the extent of it, does it really matter? If they only show shooting without entertaining actual solutions, do you expect anything to change?
Cultural-Answer-321@reddit
The revolution will not be televised.
La_Hyene911@reddit
“Men will never be free until the last king is strangled with the entrails of the last priest.”
― Denis Diderot
KlicknKlack@reddit
** In the modern era, though there were still priests - it was often remarked that politicians and other political actors like judges, lawyers, as well as other political appointments became like priests worshiping at the altars of their new earthly gods. Again, this contributed to a resurgence of past grievances.
ANoobInDisguise@reddit
The french revolution succeeded because the ultra wealthy were within a reasonable distance of the citizens, and the ones in power didn't yet have tanks, bombers, automatic weapons, private jets to escape to offshore strongholds, or the ability to remotely freeze the assets in citizens' bank accounts.
Also, not to extoll the virtues of peaceful resistance (an oxymoron) or anything but the French Revolution is not really that aspirational given it ultimately just lead to the takeover by an even worse and more violent dictator...
cheerfulKing@reddit
Well yeah, ultimately the revolution "failed" within give or take a decade. But nevertheless it started the ball rolling to more People's rights (even if just perceived rights, I'm happier with the illusion then no façade and a direct authoritarian regime, obviously real freedom is preferable, but I'll take what's there)
ConfusedWhiteDragon@reddit
> Many businesses are responding to this trend by focusing on luxury goods and premium experiences which are targeted to the top 20%
> The wealthy already basically dictate what bills become law.
Well I guess businesses big and small all catering to the wealthy will only put more and more on government to also cater to the wealthy then. Party donors. Business lobbyists. All of humanity finally united with one goal: to grow the parasite that kills us.
rainbowshummingbird@reddit
The wealthy have been busy buying up the means to oppress.
vand3lay1ndustries@reddit
“It’s a beautiful word, groceries.”
Key_Pace_2496@reddit
The wealthy are thriving because the system is fucking rigged for it to be that way.
chasingastarl1ght@reddit
It is absolutely rigged. I've got a rag to riches story and nothing has radicalized me more than witnessing first hand how the more money you have the easier it gets to have more.
Laurabengle@reddit
Same, and people treat you differently when you didn’t have money. Either you are assumed to not be as smart, or else you are not useful because you can’t buy whatever they might be selling!
radikul@reddit
If only more people understood this.
The system isn't broken - it's working as intended.
Cultural-Answer-321@reddit
Exactly. It's not rocket surgery.
SwissChzMcGeez@reddit
Elysium.
NomadicScribe@reddit
Disco?
Provizora@reddit
LOGIC [Medium: Success] - Yes, now you understand. Trickle down economy was always a lie to precede new era, a oligarchy 2.0 one.
Gentle_Capybara@reddit
The Pale.
Drawingsofrobots@reddit
Because they rigged it that way.
melody_magical@reddit
This is my reaction whenever I see an article about financial woes on a corporate media site
Desmond_Jones@reddit
PBS?
homebrew_1@reddit
Sadly this is what Americans voted for.
ParisShades@reddit
What some voted for, but not all of us.
JackBlackBowserSlaps@reddit
What the majority voted for, either directly or through apathy.
tropical58@reddit
Less than 30% voted for trump. Thats not a majority.
ParisShades@reddit
As I said before, what some, not all of us, voted for. There is still some debate if Trump actually earned those votes, especially in light of a Republican group purchasing Dominion voting machines.
I said what I said.
Cheeseshred@reddit
You don’t think Harris would have egged on the bubble too? Politicians and mainstream economists love ”line goes up”.
This is a global phenomenon. Even countries with left wing governments aren’t immune.
homebrew_1@reddit
How many billionaires do you think Harris would appoint to her cabinet?
Urshilikai@reddit
what they were propagandized into voting for
fortyfivesouth@reddit
A nation of "temporarily inconvenienced millionaires..."
ruacanobeef@reddit
tropical58@reddit
You are hoing to need more baskets
LVDarth@reddit
At work the customers brag about having multiple houses while they look physically like fucking pig humans. No offense to pigs.
JPGer@reddit
i wonder what the end game really is, like 20-50 years down the line how does this work? Are the rich expecting us to just all die off so they can have their cake and eat it too?
We used to say the economy actually needed us, but its slowly moving farther away from that and it feels like the economy is soon to be solely supported by the rich.
Funnyguyinspace@reddit
AI and robotics will do the labor for them and they can live in Elysium
0r0B0t0@reddit
Technology as tool for equality is a lie, efficiency concentrates power, always has. The tech is getting better and the regulation has gotten worse.
La_Hyene911@reddit
Tech is smoke and mirrors, its made to suck extra money out of the people. Do the math: You need a device, a phone or computer you pay for. Then you need to pay for access to the network. Then the "apps" give you a chance for marginally better choices for a huge user fee (think Doordash n all). I could go on for days but "tech" offers no benefits for the working class.. its just an excuse to overcharge, kill essential services like the Postal service and libraries.. and AI? building more resource consuming things for what? to replace workers, musician, writers and so on.
It started off as an utopian dream but now its weaponized against the working class.
_rihter@reddit
Additionally, technology has not yet boosted productivity.
That's why the rich are investing large sums of money in AI and robotics, as they are desperate for a boost in productivity.
rs1408@reddit
I beg to differ, AI has helped a lot in my field (finance, investing)
blodo_@reddit
Meanwhile, the supposed increases in productivity from "AI" have yet to really manifest either...
We're due for a bubble burst...
Snoo36543@reddit
Have you read, I have No Mouth and I Must Scream, by Harlan Ellison...?
rs1408@reddit
Because of your comment, I just read the short story. Then I had AI rewrite the ending so that a benevolent AI destroys AM and helps rebuild humanity
La_Hyene911@reddit
Also worth a mention is the William Gibson book "Neuromancer" its main focus is on two AI's manipulating humans to be connected, then shit gets real weird
La_Hyene911@reddit
Oh yeah, one the scariest books ever
anspee@reddit
Thats what happens when you let monopolies control essential societal functions
La_Hyene911@reddit
The internetswebthings are not essential... human thrived without it for a loooong time. Corporations made it essential by boxing people into a tech ghetto. Sure for those who play games and what not its fun but now its everything and its damaging everyone.
rematar@reddit
The printing press was technology. Now, most of us can read.
Wikipedia is technology. We live in an information age.
It depends if you find one that you can use. Knowledge is power, in my opinion.
malexlee@reddit
Ladies and fellas, it is class consciousness time
crushedpinkcookies@reddit
How are you planning on exhibiting class consciousness in your day to day life?
malexlee@reddit
I mean, it’s more of a way of viewing the world, community, and the economy than “doing” class consciousness lol. But there are little things one can do, that I try to.
Treating everyday people with respect and dignity is one. Everything from small things like saying thank you, tipping, and being kind to customer facing workers to actively volunteering for the benefit of local community or organizing to promote working class issues and spread class consciousness. And of course just carrying the mindset that everyone you see on a normal day shares the same basic goals and interests as yourself, and helping them helps your situation as well.
I also keep it in mind if I’m absorbing media, and especially the news, as both parties place blame on the working people of the other, rather than the party leadership that actually holds the most money and political power. As someone who (begrudgingly) usually votes Dem, it helps remind me that though they’re sometimes framed as such, the average Republican is probably not a raging KKK member bigot, but rather imo, a worker not unlike myself who was afraid they and their family were being left behind, and swayed into believing the R party or Trump would fix things, even though I believe that’s a big lie. When I talk with them, it gives me the foundation to find common ground instead of becoming adversarial: “Trans people and undocumented immigrants have such a tiny amount of political power; no matter what you think of them, it makes no sense to villainize them as the cause of problems in the US, when frankly we all have much more in common with each other and the things we worry about (food, family, prices, wages, etc) than we have with the people telling us to hate each other endlessly. Maybe a real solution to our problem lies beyond what two corporate-bought, billionaire controlled parties are offering us. Billionaires (~600 ppl total) wealth raised by $1.3 trillion dollars over the pandemic, while the working class lose about $1.3 trillion dollars collectively. Isn’t that strange….” I’ve found being more class consciousness is has helped me not vilify ppl who don’t share my politics, and engage more productively.
^even beyond arguments, I think when viewing news and media, it helps me be a bit more literate when I hear politicians or pundits place blame on the other group.
Anyways, those are just a few ways, but again, class consciousness is more of the mindset that LEADS to the “exhibiting” of organization and community activism
anspee@reddit
All this fucking hot air bullshit when all they have to say is: "see Karl Marx's rhetoric on the alienation of labour"
BlueAndYellowTowels@reddit
In early 2020 Covid19 spread across the world and economists, at that time, were saying we were going to see a lard of hardship post pandemic and that the recovery would be K shapes.
The World Economic Forum, has an article from 2020. Barely a year after Covid hit, predicting a K shaped recovery.
One thing we don’t explore enough is the impact of the Pandemic. It really amazes me sometimes how little it’s considered when it was one of the major catalysts for everything we have seen at this point.
The Pandemic was so immense and do destructive, that after it ran its course almost every Western society came under siege by Right Wing extremism. Because of the radicalizing effects of the broken economy.
To this day, people still blame governments wholly for the economy and they had some hand in it but the basic truth is most governments were damned if they do and damned if they don’t. We are here because of the pandemic. It had a massive role to play in everything.
astrobeen@reddit
I agree that Covid was a huge factor, especially the reduced cognitive functioning. Measurable drops in IQ from 3-9 points have been documented. This, compounded with algorithmic social media that is designed to simplify nuance, and amplify outrage, along with LLM advancements that simulate reasoning (but often miss the mark), are transforming society in more ways than we realize.
jackierandomson@reddit
It was merely the straw that began to break the camel's back. The system was always destined for failure.
Bman409@reddit
The fundamental root cause of this is the fiat monetary system.
I've explained it so many times to so many people, I'm just tired.
Either you get it, or you don't
Its the "cantillon effect"
va_wanderer@reddit
An economic system that's been refined for decades to funnel pretty much everything to the one-percenters results in effectively all increases being handed to the richest.
Who'd have thunk it? Now go pour another billion into the stock market, Poopsie-dog needs another platinum water dish.
demon_dopesmokr@reddit
Inequality accelerates exponentially due to self-reinforcing positive feedbacks.
Over time the entire economy becomes geared towards the needs of the rich while the poor masses become increasingly irrelevant to economic growth.
It's the competitive exclusion principle in action.
Eve_O@reddit
Carlin did comedy about this over thirty years ago: the owners have the game rigged and call it The American Dream.
It's only that these days the wealth gap is: A) becoming increasingly disgustingly obvious, and B) is effecting more people than it did thirty years ago as the middle class are being squeezed out of existence.
The trajectory began with Nixon over fifty years ago and it's been a steady erosion ever since--especially when Reagan did everything he could to dismantle the New Deal while his administration and other right-wing/conservative Western global powers fully adopted neoliberal economic policies. Those policies favoured increasing the wealth of those who already had plenty and prevented the have-nots from gaining much of anything while at the same time destroying social safety nets, reducing regulations, and shifting responsibilities to corporate entities. Because, sure, corporations can be trusted to self-police...I guess?
But, you know:
NO ONE COULD HAVE POSSIBLY FORESEEN THIS OUTCOME.
Yeah, anyway...
The best time to feast on the rich was forty years ago.
The next best time is today.
How bad are people going to let things get before they recognize with clarity who the actual enemy of the people really is? ^(1)
^(1. Hint: it's the owners and their political puppets who are almost always also rich--as Carlin noted...)^(thirty fucking years ago)^(.)
ComradeGibbon@reddit
The fire is doing great. The house not so much.
Tearakan@reddit
Not for much longer. The entire thing is held up in an AI bubble
whoknowsknowone@reddit
Which is going to be crashing any week now
KudaCee@reddit
Cantillionaire effect. All by design.
Kilo_Renn@reddit
Welcome to the American caste system
Crash_0veride@reddit
Income Group Estimated Share of Total PCE (2023) Notes Bottom 20% (lowest quintile) ~10-12% Heavily weighted toward essentials like housing and food. Second 20% ~12-14% Similar to above, with some discretionary spending. Third 20% ~14-16% Balanced mix of needs and wants. Fourth 20% ~16-18% Higher discretionary (e.g., travel, dining). Bottom 80% (sum) ~52-60% Aggregates to majority of economy; varies slightly by year/method. Top 20% ~40-48% Drives luxury and investment-related spending.
Sources and Methodology Notes: BLS prototype data (2000–2023) allocates PCE by equivalized household expenditures (adjusted for size). Shares sum to 100% and align with BEA national PCE totals (~$19 trillion in 2023). A 2019 BLS presentation (preliminary estimates) showed the bottom quintile alone at ~23.5% of PCE when equivalized, but full quintile breakdowns average ~50% for the bottom 80% in recent years. Moody's Analytics (2025 update) estimates the top 20% at ~40-45% of PCE, implying ~55-60% for the bottom 80%. This uses Fed Survey of Consumer Finances data, focusing on after-tax income groups.
DigitalHuk@reddit
Ah yes the inevitable trajectory of capitalism making it unstable.
imminentjogger5@reddit
this is a global issue
victor4700@reddit
It’s a feature not a bug
StatementBot@reddit
The following submission statement was provided by /u/laxnut90:
Many economists are worried about the emergence of a "K-Shaped" economy in which the benefits of economic growth increasingly go to those already at the top, while those on the bottom are left behind.
The top 10% account for 50% of economic activity.
Meanwhile, the bottom 80% account for less than 20% of economic activity.
Many businesses are responding to this trend by focusing on luxury goods and premium experiences which are targeted to the top 20% who account for roughly 80% of consumer spending.
Fewer than 25% of Americans believe they have a chance of improving their standard of living, a record low.
Please reply to OP's comment here: https://old.reddit.com/r/collapse/comments/1o8l4rn/kshaped_economy_why_the_wealthy_are_thriving_as/njvp2u9/