Economist explains how the ‘K-shaped economy’ is impacting the midterms
WASHINGTON (Gray DC) - As voters prepare to head to the polls for the midterm elections, a conflicting economic sentiment is once again emerging on the campaign trail. “Voters reflect the perception of the cost of living as they experienced, as opposed to what is in the data,” said Alessandro Rebucci, an economics professor at Johns Hopkins Carey Business School. “In the data, you have an economy that is very strong as a whole. How that pie is distributed affects how a large segment of the population and the voters are feeling about the economy right now.” The contradiction has been described by many economists recently, as the “k-shaped” economy, using a graph to depict how high-income earners and asset owners are doing compared to middle and lower-income earners. “To be concrete, the wealthiest households are presumed to spend much more than the lowest ones, not only in absolute…