Stratification in the Economy

The economy has increasingly become stratified, with a small number of companies or individuals driving the majority of financial outcomes. In 2024, the stock market experienced significant gains overall, but a closer look revealed that many individual stocks underperformed despite strong index results. This phenomenon is evident in the tech sector, where a few companies, known as the Magnificent Seven, comprise a substantial portion of the S&P 500, leading to a higher concentration of wealth and success. This dynamic amplifies the disparity, creating a reality where some thrive immensely while others struggle or fail, influencing both careers and mental well-being across various industries.