Where we're at with the K-shaped economy & K-shaped consumer

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35 segments

0:00

K-shaped economy, K-shaped consumer.

0:02

Define this for me. Like, what is this

0:03

all about?

0:04

>> This is all about three things. Number

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one, is about a K-shaped situation in

0:07

wealth. That high-income households

0:10

today, relative to 2019, have literally

0:12

savings that are trillions of dollars

0:14

higher than where they were in 2019.

0:16

>> Trillions?

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>> Trillions. About 1 and 1/2 trillion

0:19

dollar higher than where it was in 2019.

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That's why the airlines have been

0:23

saying, quite simply, basically, that

0:26

they have no problem selling business

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class tickets to high-income households,

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but they're having some challenges

0:30

selling business class tickets, and

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sorry, economy class tickets to

0:33

low-income households.

0:34

>> Okay.

0:34

>> Because low-income households, the

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bottom 20% of the population, people who

0:37

make less than $25,000 a year, their

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savings cumulatively as a group today,

0:41

is literally in dollar terms exactly the

0:43

same as where it was in 2019.

0:45

>> So, what you're saying is people 25,000

0:47

below have no more savings than they had

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in 2019.

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>> terms. Exactly the same.

0:51

>> at the upper end have a trillion and a

0:53

half more savings.

0:53

>> Yes.

0:54

>> That's an enormous disparity.

Interactive Summary

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The video discusses the concept of a 'K-shaped economy' where there is a growing disparity in wealth and savings between high-income and low-income households since 2019. While high-income earners have accumulated significantly higher savings, low-income households have seen no growth in their cumulative savings during the same period.