The K-Shaped Economy

The "K-shaped economy" describes a widening divergence in economic experiences, where the wealthiest households drive consumption through asset-backed growth while lower-income groups face persistent cost-of-living pressures. This structural polarization, increasingly visible in U.S. and global data, reflects a shift from shared economic cycles to fragmented outcomes driven by financial and technological investment. Margaret Thatcher’s 1979 inauguration marked a similarly transformative era, characterized by the aggressive dismantling of post-war Keynesianism through privatization, labor union suppression, and a commitment to Atlanticist neoliberalism. While Thatcher successfully reshaped the British state and global financial markets, her policies inadvertently fostered the conditions for subsequent crises, including the 2008 financial collapse and the political volatility surrounding Brexit. These historical and contemporary shifts demonstrate how economic policy choices fundamentally alter class structures and political stability, often producing unintended, long-term consequences that challenge the initial objectives of the governing agenda.