{"id":2809,"date":"2026-08-18T09:50:07","date_gmt":"2026-08-18T09:50:07","guid":{"rendered":"https:\/\/valutednews.com\/?p=2809"},"modified":"2026-08-18T09:50:07","modified_gmt":"2026-08-18T09:50:07","slug":"inside-nycs-k-shaped-economy-a-few-do-well-most-do-not","status":"publish","type":"post","link":"https:\/\/valutednews.com\/?p=2809","title":{"rendered":"Inside NYC\u2019s K-Shaped Economy: A Few Do Well, Most Do Not"},"content":{"rendered":"
<\/div>

<\/p>\n

\n

Yves here. An old saw in consumer marketing was that as California went in new tastes, the US would eventually follow. But in this case, New York City may have pulled out ahead in its reaction its particularly severe income inequality. Its K-shaped economy is more acute than in the US overall, with even richer rich and more proportionately in poverty. And that pattern has been intensifying. So is it any wonder that an articulate young man like Mandami, who pushed for and is even making some progress in getting economic justice, was not only elected mayor but also is winning national attention, to the degree that he is credited with influencing election outcomes?<\/p>\n

This post has terrific data but I was unable to figure out how to reformat the interactive charts so their width worked better on this site. I decided to retain the interactive features rather than take screenshots. They are still readable but not as pretty as would be ideal <\/p>\n

By Nancy Jiang, an intern at The City Reporter. Originally published at The City Reporter<\/a><\/strong><\/em><\/p>\n

Millionaires who captured more than half of all of New York City\u2019s income growth since the pandemic.<\/p>\n

A poverty rate that keeps climbing and is much higher than the nation as a whole.<\/p>\n

Stratospheric Wall Street<\/a> profits.<\/p>\n

Record numbers of New Yorkers receiving cash assistance and SNAP benefits<\/a>.<\/p>\n

The image suggested by these data points and more in the charts below is a K. An upward-sloping line that shows the gains by the few. And a downward-sloping line showing the deteriorating financial well-being of so many others.<\/p>\n\n\n

The K-shaped economy, a concept popularized in 2020 by William & Mary economist Peter Atwater, is a national issue.<\/p>\n

And as the election victories by Mayor Zohran Mamdani<\/a> and his fellow democratic socialists<\/a> show, its impact goes far beyond the economy.<\/p>\n

The Rich \u2018Feel Invulnerable\u2019<\/b><\/p>\n

\u201cThe reason the K-shaped economy matters isn\u2019t because of what it says about wages or wealth, but what it says about how people feel and their life experience,\u201d Atwater told The City Reporter.<\/p>\n

\u201cToday, those at the top feel invulnerable. Moreover, they have an overabundance in everything that matters,\u201d he said. \u201cMeanwhile, those at the bottom feel increasingly powerless and uncertain. They see scarcity in every direction they turn.\u201d<\/p>\n

Top officials in the Trump administration dismiss the whole idea.<\/p>\n

\u201cI can say here definitively, the K-shaped economy is over,\u201d Treasury Secretary Scott Bessent said on<\/a> CNBC\u2019s \u201cSquawk Box\u201d last month, arguing that wages are growing fastest for low-paying jobs.<\/p>\n

But even if that is more than a statistical blip, it\u2019s not true for New York City.<\/p>\n

\u201cThe way finance and tech are growing today, coupled with wage stagnation for most workers, makes the post-pandemic NYC economy more polarized than ever,\u201d James Parrott, senior advisor to the Center for New York City Affairs at the New School, said in an email.<\/p>\n

The data and charts in this story show that the K shape may be the defining symbol of the city\u2019s economy.<\/p>\n

What follows is a series of data charts that show New York City\u2019s extreme K, with an emphasis on income, the rise in New Yorkers\u2019 reliance on safety net benefits, and the divergence in real estate ownership.<\/p>\n

Growing Income Inequality and Poverty\u00a0<\/strong><\/p>\n

The city\u2019s top 1%, or some 40,700 millionaires, captured 53% of income growth over five years. Since 2019, the rate of income growth has ramped up for the city\u2019s wealthiest, while it has slowed for the 99%.<\/p>\n