The K-shaped economy is growing more severe, reports show

• Wealthiest Americans saw 6% year-on-year wage gains, while the lowest income groups saw only 1.5%.
• The wage gap between highest and lowest paid workers has widened, with highest earners making 6.4 times more than the lowest, up from 5.9 times in 2023.
• Wealthier households maintained gas consumption by matching price increases, while lower-income families cut back on gas to make ends meet.

The K-shaped economy is becoming more severe, with a widening gap between high and low-income households. Reports from Bank of America Institute, ADP, and the New York Fed show that wealthier Americans are experiencing significantly higher wage gains and maintaining gas consumption, while lower-income families face stagnant wages and are forced to cut back on essential spending.