Deciding if the K-shaped Economy is Really an E


We might be back to our K-shaped economy.

But it could be an “E.”

Household Spending

Gasoline

During March, gasoline spending rose by more than 15% while actual gasoline consumption was down 3%. Looking more closely, we can see the different response to elevated gas prices from high (earning over $125,000), middle (earning between $40,000 and $125,000), and low (earning less than $40,000 a year) income households. Spending 19% more, high income households reduced the gallons they bought by just 1%. At the same time, the lowest income group spent 12% more, even when cutting gas purchases by 7%. As for the middle, you can see below that their numbers were in between the other groups.

Consequently, sentiment is moving toward an E. Saying we no longer have a K with high income sloped upward and lower groups sinking, instead, they point to the differences for high, middle, and low.

Necessities and Luxuries

Somewhat similarly, in addition to gasoline, we have to decide between the K and the E for necessities and luxuries. One reason for the divide is the wealth increase for high income households since 2023 that fueled the increase in retail spending. But also, at the same time, the middle was splintering from the top while low income households experienced more inflation:

k-shaped economy

Our Bottom Line: Alphabet Economics

We’ve always used letters to describe how our economy behaves:

k-shaped economy and other letters

Perhaps though, the Bank of America Institute said it perfectly when they told us that, “Income‑based divergence in spending and wage growth persists, and we are concerned that a “K” shape is opening up between higher-income households and middle-income households, alongside the existing gap with lower-income households.”

So, yes, the B of A confirmed that now we need to add E.

My sources and more: Always a solid source, the NY Fed’s Liberty Street Economics, here, here, and here inspired today’s post and provided many of our facts. But then we read about the E-shaped economy with NerdWallet having more to say about it.



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A toolkit can go a long way toward helping you stock up on essentials. All of the major tool brands offer different kinds, including the longstanding power and hand tool favorite, Craftsman. Its products can be found in many online stores, and Amazon is currently holding a major sale. At the time of publication, a 262-piece Craftsman hand tool set is on a massive markdown of 40% off, saving you $100 at checkout.

The collection currently costs $149, which is still a lot of money, but is a big budgetary improvement over the $249 regular price. With the discount, you’re getting more for your dollar, and this kit includes 118 sockets, three ratchets to use them on, 24 wrenches, 44 hex keys, 66 specialty bits, and seven extra accessories. The set comes in a three-drawer, handled toolbox that’s part of the Craftsman VersaStack modular storage system. You’re also getting a full lifetime warranty.

While the price and quantity of tools may seem right, what is there to say about the quality of this Craftsman kit? According to most customers, it’s a worthwhile buy for any DIYer, even without a huge sale to sweeten the deal.

How online buyers feel about this Craftsman tool kit

On Amazon, the response to this specific Craftsman tool kit has been resoundingly positive. There are currently close to 300 reviews discussing this specific variant and over 10,000 for the overall product, and the vast majority gave it five stars. Most found the quality of the tools and sockets more than up to par, the VersaStack toolbox sturdy and great for organization and protection, and the price adequate. Still, it’s often said this is more of a beginner or around-the-house kind of kit, so if you want it for professional use, it’s not considered the strongest option on the market.

Elsewhere online, this kit has continued to garner largely positive press. On the Craftsman website itself, almost all of the 18 reviews gave it five stars. Some applauded the functionality of the VersaStack case and its ability to connect to other boxes in the line, while others praised the versatility of the tools within. Meanwhile, most of the 289 reviews on Lowe’s website are five-star and approve of the kit’s piece selection and durability.

There are a lot of great mechanic tool sets for anyone’s budget, and there could be a case to make that this Craftsman 262-piece set belongs alongside them. At its sale price or otherwise, it’s a hit across several retailers. Whether it’s the right set for you and your hand tool-related needs, though, is a question only you can answer. 





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