Two harsh realities are keeping lower earners stuck while the wealthy pull ahead - Business Insider

New research says the U.S. recovery is K-shaped because two forces are pushing outcomes apart: inflation is hitting lower earners much harder, while blockbuster stock-market gains mostly benefit wealthy investors. Those twin realities — higher everyday costs for wage earners and outsized investment returns for the wealthy — are reinforcing each other and widening income and wealth gaps. The findings tie into broader reporting on rising economic pessimism amid fuel and market volatility, cuts to workplace benefits, heavier health-care burdens, and teacher pay that hasn’t kept up with inflation.