The K-Shaped Divide and Finding Meaning in Simplicity: My Snowblower and Free Opportunities Tomorrow

A K-shaped economy is one in which the upper echelons of society increasingly earn more while the lower echelons struggle. In other words, the rich get richer and the poor get poorer. This dynamic can also strain small businesses, which in turn affects innovation over time. Mature, well-established companies might thrive in a K-shaped recovery, but that strength comes with a potential long-term cost if resources and innovation begin to dry up among smaller firms.

If that sign seems up everyday 
I guess people have to 
create their own opportunities
with small business, profitable,
hobbies, and enjoying the
simplicity of life to create new
ideas.

This is one reason why some policymakers might emphasize the importance of supporting small businesses, entrepreneurs, innovative clusters (where large and small firms can grow together), and the revitalization of downtowns with new attractive products that we may someday want to export (potential long tail of wealth generation). We’ve been consolidating wealth and directing attention toward the needs of large companies for decades, and while that can bring benefits, it also risks creating economic instability if the system becomes unbalanced. Each of the sizes should be balanced so there is constant flow of innovation, wealth generation and even ideas on a macro level. Why Start-Ups are Important to the Economy?

K I got a plan for how to deal with the economy. It is my plan and I think you can make a better one for yourself. 

Personally, I prefer doing much of my own work, and as I get older, I find myself consuming less and spending more on the things I genuinely value. When you’re young, it’s easy to buy things to impress others, but once you develop a clearer sense of self—independent of external displays of wealth—you begin focusing more on what truly brings you joy (If your young spend less, do more yourself, and save to buy assets because they grow. The same for stocks, houses, and land. We need more of the average people rising in wealth and bringing their hard earned values along with them. Once you reach a certan wealth threshold it is easier to make wealth. This is why the first million is the hardest and why the wealthy often stay wealthy. When you make it, go back and help the little peeps. i.e. generational social exchanges.).

Beat the K Economy
with low tech snow season solutions!
Our great and great great grand parents
removed snow the old
fashion way but also 
created wealth for the Baby Boomers.
Next generation is expected
to have it harder. It takes about 3
generations from what I have read
 to burn wealth but
one can revitalize and extend
that through rejuvenation. 
New technology might
contain some of that ability.
Can you harness it in your small business?

In the context of a K-shaped economy and my own hobby-business pursuits, I’ll likely need to cut back in a few areas: making more coffee at home instead of buying it, choosing activities I enjoy that aren’t expensive, and investing my time where it brings the most fulfillment. Maybe that even means spending more time thinking about ways to improve the economy—and working on my next masterpiece painting I can sell for $40 (that few buy) 🙃 

(As an example I was going to buy a new snow blower $1200 but opted for an electric one to see if that will suit my needs $270. If I don't like it, I will return it but if it does the job it has less parts and less likely to break down. People love to debate gas vs electric but I might as well try it for the price to see if it works well enough for my driveway and maybe my neighbors. I'm thinking the batteries won't last that long but I might be wrong. This is also why companies are experimenting with batteries now. Also, electric is more of a simple design with less moving parts than gas engines. Gas engines have more power but likely to break down more often. It is just a preference at this point. Money saved! Take that K Economy!).

JP Morgan K Shape

CBS-K Shape Impact