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The Dreaded K-Shaped Economy
The K-Shape Index (KSI)—a 0–100 measure of recovery inequality built from employment divergence, GDP–jobs gaps, long-term unemployment, sectoral dispersion, and wealth concentration—captures this divide. A score above 60 signals a sharply unequal recovery. The U.S. has repeatedly experienced K-shaped economy recoveries, where GDP rises while households diverge. Past cycles — 1990–91 (KSI 54), 2001 (64), 2007–09 (90), and 2020–21 (90) — all showed the same pattern: output rebo
DOMINIC SOMMERVILLE
Nov 17, 20251 min read


Are U.S. Households Feeling the Squeeze? A Look at Consumer Affordability
Across the United States, millions of households are asking the same question: why does everything still feel so expensive? On paper, the economy looks solid. Unemployment remains near record lows, inflation has cooled, and consumer spending hasn’t collapsed. Yet for most Americans, it doesn’t feel like relief has arrived. The grocery bill is still higher than it used to be. Rent keeps climbing. And even with a steady paycheck, there’s less left at the end of each month. The
DOMINIC SOMMERVILLE
Nov 1, 20253 min read
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