The “K-Shaped” Economy: Why the Middle Class Is Getting Crushed
On The Market
Shocking Spending Concentration Stat
Dave explains that the top 10% account for half of spending and how that concentrates one-third of GDP reliance.
Stock prices are up, home prices are high, gold, silver, and bitcoin have all had major bull runs. But the average American is broke. This is the “K-shaped” economy.
If you feel like it’s harder to get by and the barrier to entry to invest is rising, you’re not going crazy. We’re in a new economy—a “K-shaped” economy—where those who own assets see their net worth soar as the middle class and average Americans watch their bank accounts shrink. This is not the place Americans want to be in right now, and the delicate balance that holds up our entire economy could fall apart sooner than we think.
Dave explains what a K-shaped economy is, how it could bleed into the housing market, and whether this feast-or-famine system can survive much longer. Plus, he’ll share a shocking statistic that shows just how hard things are for ordinary Americans, and how a tiny minority is holding up the entire economy.
In This Episode We Cover
A “K-shaped” economy explained, and why Americans feel broke as asset prices soar
A shocking statistic that shows just how unstable the American economy is
Housing market side effects and the surprising age of America’s first-time homebuyer
The widening wealth gap making investing harder for everyday people
The three things that are keeping the middle class struggling (and why it’s gotten worse)
Tough times ahead? Why America’s economy may be riding on billionaires and bubbles
And So Much More!
Links from the Show
Join the Future of Real Estate Investing with Fundrise
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On The Market 372 - New Recession Indicator Shows Americans Worse Off Than We Thought
Redfin Reports U.S. Luxury Home Prices Jump 5.5% in October, Triple the Pace of Non-Luxury Homes
Grab the Book, "Recession-Proof Real Estate Investing"
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-379
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