https://www.morningbrew.com/stories/2025/11/03/evidence-of-k-shaped-economy-popping-up-everywhere-The affluent doing very well along with the booming stock market and the appreciation of their homes in the inventory-crunched real estate market.
-Nearly everyone else faltering due to a shaky job market, high interest rates, and/or inflation.
Auto: In September, the cost of a new vehicle passed the $50,000 mark for the first time, according to Cox Automotive’s Kelley Blue Book. And repossession volume passing through Manheim, the auction group owned by Cox, was up 12% through the end of September on an annualized basis, according to the Wall Street Journal’s deep-dive into the rise of auto repos.
Airlines: Delta Air Lines CEO Ed Bastian said that sales of premium seats would exceed those of coach seats for at least one or two quarters in 2026.
Food & bev: Coca-Cola CEO James Quincey told CNBC that sales of its premium brands, like Smartwater, Topo Chico, and Fairlife, are juicing the company’s sales, while Coke demand is up at dollar stores, as well as at amusement parks frequented by higher spenders.
Consumer goods: Apple grew by double digits last quarter, thanks to strong sales of the $799 iPhone 17. And while economist Leo Feler told Marketplace that “everyone has kept buying health and personal care items,” how and when they buy them has changed. Wealthier shoppers are making hauls at Costco, while budget-constrained shoppers use up everything at home before going shopping.
Zoom out: Economic trends suggest that the gap will widen rather than narrow. Economist Betsey Stevenson of the University of Michigan told Marketplace, “The real risk to a K-shaped economy is social and political instability.”—HVL
Comments
every ceo that thinks they have a plausible story in shifting to the upper K (more dollars, much smaller volumes) are yapping up the premiumization story.
~90% of the time its the same stuff in a different container, which means they hope enough marketing can close the cognition gap.
none are speaking of durability, nor the fact that every competitor has the same story for capturing the same smaller group of high dollar consumers.
i dont ever see a return to anywhere near the same number of profitable mass market corporations in america; that would require substantial and rational economic policies for a decade+ to have a chance to fix the damage.