Recent data and reports by a number of economists and financial institutions tend to confirm what last Tuesday’s election results also suggested – that the United States effectively has an economy with two branches, one for those who have decent-paying jobs and financial reserves and another for those who have neither, a condition described as K-shaped, where the same financial conditions have differing impacts for different people.

Higher interest rates and rising stock prices benefit those who can save and invest, but those higher interest rates punish those with mortgages, credit card balances, and student loan debt. Higher interest rates also discourage businesses from hiring and encourage streamlining and economizing, which usually means layoffs.

The youth (ages 16-24) unemployment rate increased to 10.5% by this past September, and that’s three times the rate for Gen X and Millennials. Average new car prices topped $50,000 for the first time ever, and an indication of the impact on the less fortunate is car repossessions, which have increased 16% over last year and are at the highest rate since 2009. Add to that the rising cost of student loan repayments, which have increased by six percent over last year.

When you consider that the average cost of a basic one-bedroom apartment in New York City is $4,000 a month, that might just explain the results of the recent mayoral election.

On the other side, the gross profit margin of the pharmaceutical industry is over 70%, compared to 2% for the pharmacies that dispense and sell those prescription drugs, which might explain why the pharmacy clerks are having a hard time of it, while the drug company executives are rolling in dough… and why more than a few people, primarily younger adults, still openly back Luigi Mangione… and why Zohran Mamdani managed to attract over 90,000 largely youthful volunteers to support his successful campaign for NYC Mayor.