Unhedged Is the K-shaped economy real?
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Nov 13, 2025 Explore the idea of a K-shaped economy where wealth disparity is leading to different consumer behaviors. While lower-income shoppers are tightening their belts, upper-income individuals continue to spend freely. Dive into the implications of wealth inequality, job insecurity, and the psychology behind cautious spending after the pandemic. The hosts discuss how market dynamics and passive investing strategies play into the narrative, and raise important ethical questions about using employee banking data in pay negotiations.
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Homemade Dishwasher Tablet Experiment
- Katie Martin recounts making homemade dishwasher tablets from bicarb, citric acid and washing-up liquid, noting they actually work.
- She warns not to buy nitroglycerin and reports getting an eye roll from her partner when admitting the experiment.
Wealth Concentration Is Longstanding
- US wealth is highly concentrated: roughly the top half owns nearly all the wealth according to the Fed's distributional accounts.
- That extreme inequality is longstanding, so it can't fully explain recent shifts in consumer behaviour.
Psychology Drives Spending Divergence
- Changing consumer psychology, not just raw income, may explain divergent spending patterns between richer and poorer households.
- People now feel more insecure about jobs and future prospects even while headline employment and GDP look solid.