Media discovers K-shaped economy

 

A few economists and the media have discovered what they call the "K-shaped" economy.  According to the US Bank website, 

"A K-shaped economy describes an economic recovery where different groups or industries experience vastly different outcomes – some thrive and grow, while others struggle or decline. This term was intended to highlight the widening economic inequality during periods of recovery or downturn. It fits the saying, 'the rich get richer and the poor get poorer.'"

Another Billionaire Bites The Invisible Hand That Feeds Him

Source: AP Photo/Michel Euler

Hayek wrote in Intellectuals and Socialism that, “The main task of those who believe in the basic principles of the capitalist system must frequently be to defend this system against the capitalists--indeed the great liberal economists, from Adam Smith to the present, have always known this.”