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Economist Warns of Worsening U.S. K-Shaped Economy

2/15/2026

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Story summary
  • Economist Peter Atwater warns that U.S. K-shaped economy may worsen, creating a caste system where high earners prosper and lower-income Americans struggle.
  • He notes asset ownership gaps, with the top 10% holding about half of household wealth in stocks, while the bottom 50% own 1%.
  • Atwater says confidence among low earners fell to 55.4 in January, and the divide could reverse within months if policies address income inequality or unrest occurs.