The west is becoming a K-shaped economy, and most of you are NOT ready. A K-shaped economy is one with a relatively large upper/upper-middle class (in the US, around 25% of households are UMC or above), a small traditional middle class, and a large number of poors. Westerners traditionally see themselves as part of an 'O'-shaped economy, with a small number of people at the top and bottom, and most people in the middle. In an 'O' system, the health of 'the economy' as a whole is largely linked to the fortunes of the middle class.But that is outdated. With such a large UMC class, the K-shaped economy can sustain itself with spending and economic participation from wealthier people alone. There are 78,000 households in the US worth more than $100 million. Their consumer spending alone is greater than tens of millions of middle/lower-class households. Even if 75% of the population becomes impoverished, 'the economy' as a national-level system will remain stable and even 'prosperous.' In practice:>More people overall can afford 'luxury' goods>Fewer people overall can afford middle-market goodsFor example, beef at $US20/lb or more (€38.8 per kg) becomes a bit of a 'luxury' good for a lot of people. But not for the UMC; their price point is higher than that. The beef industry can increase profits by increasing prices and having ¼th of the market pay for everything, even if less volume (poundage) is sold overall.That's how the 'K' works. This is a very tough thing for most westerners to accept, conceptually. It doesn't feel 'right.' It feels 'unfair.' But it is happening.The solution is to get into the UMC as quickly as possible, at any cost. AI and technology will generally lead to the calcification of economic status. Upward mobility will become tougher rather than easier. You probably have 3 to 5 years to pull it together and become UMC, or else your entire future lineage will become one of history's losers.
>>540087929Here's a version in 50 words:The West is shifting toward a K-shaped economy: a wealthy minority prospers while a growing lower class struggles, shrinking the middle class. The economy can thrive on affluent spending alone, despite widespread poverty. As AI reduces mobility, moving into the upper-middle class soon may become increasingly difficult yet economically decisive.
>>540087929shut the fuck up commie rat.we have problems but socialism isn't the answer. less government is the answer.
>>540088406'Politics' in the traditional western sense won't matter as much, because people with wealth will have overwhelming resources in terms of shaping the political system to their own ends, regardless of who is in charge.
>>540088406Like capitalism, communism, socialism or anarchy, liberalism (in the literal sense of the word) would make the AI situation even worse than it is without an elite ideology.
>>540087929Inflation is exponential anon, I'm not too concerned about the longevity of this playing out.
>>540087929Easy to solve if you just deport the lower class (brown)
When does the violence start?
>>540089298'Inflation' doesn't really work the same way in a K-shaped system. Since so much capital is concentrated among the top quartile, there are in some sense FEWER individual dollars 'competing' for each individual good. But instead of making things cheaper (ie, deflation), the effect is for goods desired by the top quartile to rise in price (becoming more akin to luxury goods) while lower-priced goods vanish from the market entirely, or are replaced by truly bottom-barrel junk options.
once the market crashes everyone will forget about this K shape nonsense
