Headline economic data has looked solid all year, yet consumer surveys keep showing deep anxiety about the cost of living. Johns Hopkins economist Alessandro Rebucci says there’s a name for that gap: the K-shaped economy. High-income earners and people who own assets have pulled ahead, while middle- and lower-income households are still fighting rising prices and tighter budgets.
Rebucci’s explanation is straightforward. Voters don’t judge the economy by jobs reports or GDP. They judge it by the costs they experience personally, from insurance premiums to electric bills. That’s why a statement like “the greatest economy we’ve ever had” can land differently depending on which arm of the K you’re standing on. On the Suncoast, where so many neighbors live on fixed incomes and seasonal work, that split is easy to see.
Heading into the midterms, the political question may come down to opportunity. Rebucci argues the goal is making people believe they still have a real shot at reaching the top. If that belief fades, no aggregate number will fix it. Where are you feeling the squeeze in your household budget this month? Let us know in the comments or call in to the show.
