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The “K-shaped economy” describes how wealthy Americans enjoy rising incomes and wealth while lower-income households struggle with stagnant wages and inflation.

The divide explains economic puzzles: strong stock markets and corporate profits coexist with sluggish hiring and mounting financial strain for lower-income and middle-class Americans.

Economists worry the divide is unsustainable as corporate leaders target premium goods to the wealthy while cutting costs for struggling middle and lower-income Americans.

From corporate executives to Wall Street analysts to Federal Reserve officials, references to the “K-shaped economy” are rapidly proliferating.

So what does it mean? Simp

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