The K-Shaped Economy

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Tags: Financial Markets, U.S. Economy

12/06/2025 Mark Thornton

On the latest episode of Minor Issues, Mark Thornton takes apart the media’s “K-shaped economy” cliché. He explains the divergence the Austrian way: Cantillon effects from decades of deficit spending and artificially low rates that lift asset holders and big borrowers, while eroding wages and pricing-out families. Mark shows why the usual fixes like tax tweaks and rate cuts backfire. He also lays out a real cure: deep federal spending cuts, program eliminations, market-set interest rates, and sound money that restores honest price signals for everyone.

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