Recently, the term "K-shaped economy" has suddenly become popular—business owners are talking about it, Wall Street analysts are discussing it, and even people from the Fed have started mentioning it frequently.

What is a K-shaped economy? Imagine the shape of the letter K: the upper part represents high-income groups, whose wealth is skyrocketing like a rocket; the lower part represents ordinary workers and low-income families, whose income has not increased much, while prices are rising rapidly, making life increasingly difficult.

Why has this term suddenly become popular? Because it perfectly explains the bizarre state of the American economy right now:

- The economic data looks okay, but companies are being cautious about hiring, and the unemployment rate has slightly increased.
- Total consumption is increasing, but the consumer confidence index is declining.
- AI data centers are being built rapidly, while traditional factories are laying off employees.
- Wage growth has slowed, yet the stock market is still hovering near historical highs.
- Houses are not selling, but rents are sky-high.

Simply put, there are two worlds: those with assets are getting happier (stocks are rising, real estate is appreciating), while those without assets are finding it increasingly difficult (rent is unaffordable, and the prices of vegetables and meat are all rising).

This division has begun to affect politics. Last month, in several key elections in the United States, the Democratic Party was able to win largely because voters were fed up with the high rents, food prices, and the costs of imported goods. Peter Atwater, an economics professor at the College of William & Mary, put it bluntly: the lower-income groups are under daily pressure from rising prices, while the upper-income groups are enjoying the dividends of asset appreciation.

How long will this K-shaped divergence last? Will it evolve into an L-shaped (complete flatlining), U-shaped (slow recovery), or V-shaped (rapid rebound)? Currently, no one can provide an answer. But what is certain is that this game of wealth divergence is reshaping everyone's wallet and future.