The Indicator from Planet Money · Thursday, August 13, 2026
Economist Mike Strain explained that the original concept of a K-shaped economy meant the rich got richer while the poor got poorer, which was true during the pandemic. However, he notes the term's definition has broadened to simply describe inequality, even if absolute outcomes improve for all income levels.
“The original usage of the term K-shape meant that the poor were getting poorer at the same time that the rich were getting richer.”
“Over the last few years, different people are using the term in different ways, and some people are using it as just another way of describing inequality, which is different than its original usage, because inequality can be increasing even if both more affluent and less affluent Americans are seeing their outcomes improve in an absolute sense.”