Tuesday, August 18, 2026

The "K" Economy -- In Progress -- August 18, 2026

Locator: 51447K-ECONOMY.  

The "K" economy

  • I doubt this ("the K economy")  means much to the average investor, except perhaps in certain sectors;
    • isn't a "K" economy pretty much what we have always had?
  • the importance of the "K" economy -- how thick the two "legs" are to the right
  • if the upper leg is growing thicker that is way more important to the active investor than if the lower leg is growing thicker -- in fact, that leads to this: it would be helpful if we had a ratio -- the thickness of the top leg to the bottom leg -- I doubt the two legs are equal in thickness -- and what defines the economy or the two legs that the "K" economy is said to represent.  


Income brackets:


Who are the "real" investors? My hunch: it starts in the upper middle class but becomes almost 100% in upper class tier.


What we're going to do next is come up with a definition of the two legs to the right on the "K" and figure out a way to assign a single number to each and then be able to track the ratio over time. But we will save that for later.

In fact, there is a single number that economists use to define the upper leg and the lower leg. We might get to that later but you can certainly tease out that number by yourself by reading any Economics 101 book or talking with a chatbot.

So, bottom line, how does one look at the "K-economy" overall. One thesis:  

The optimal environment for traditional equity investing is a stable, widening K-economy where capital efficiently captures the gains of technology and automation.