The “K-Shaped” Economy: Why the Middle Class Is Getting Crushed

04/12/2025 37 min Episodio 379
The “K-Shaped” Economy: Why the Middle Class Is Getting Crushed

Listen "The “K-Shaped” Economy: Why the Middle Class Is Getting Crushed"

Episode Synopsis

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

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On The Market 372 - New Recession Indicator Shows Americans Worse Off Than We Thought

Dave's BiggerPockets Profile

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"



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