In our last episode, Work vs. Wealth: Why Homeownership Keeps Moving Out of Reach, we explored the widening gap between wealth and work, making homeownership increasingly difficult to attain.

In this follow-up conversation, Robin and Jaime zoom out to examine the broader economic forces behind that trend.

If inflation is under control, why do groceries, insurance, and housing feel so much more expensive? If the economy is booming, why do so many people feel like they're working harder just to stay in the same place?

To understand that disconnect, Robin and Jaime explore the concept of a K-shaped economy—a framework that helps explain why economic growth can feel very different depending on whether your income comes from assets or wages.

Along the way, they discuss the difference between asset inflation and real wealth, why economic indicators often feel disconnected from everyday experience, and how policies designed to stimulate the economy can produce very different outcomes depending on which side of the K you're on.

This episode provides the economic context behind the housing affordability challenges discussed in our previous episode—and helps explain why so many people feel like the numbers don't match reality.

Sources & Further ReadingUnderstanding the K-Shaped Economy

• Encyclopædia Britannica: What Is a K-Shaped Economy?
• https://www.britannica.com/money/k-shaped-economy

Income Inequality & Wealth Gaps

• Pew Research Center: Wealth Gaps Within Racial and Ethnic Groups
• https://www.pewresearch.org/2023/12/04/wealth-gaps-within-racial-and-ethnic-groups/
• Pew Research Center: Economic Inequality Seen as a Major Challenge Around the World
• https://www.pewresearch.org/global/2025/01/09/economic-inequality-seen-as-major-challenge-around-the-world/

Housing, Homeownership & Housing Finance

• Urban Institute: The Future of Homeownership and Housing Finance
• https://www.urban.org/sites/default/files/2025-06/The_Future_of_Homeownership_and_Housing_Finance.pdf
• Urban Institute: How Expanding Housing Supply and Supporting Demand Can Increase Homeownership
• https://www.urban.org/research/publication/how-expanding-housing-supply-and-supporting-demand-can-increase-homeownership

50-Year Mortgages

• NPR Planet Money: Is a 50-Year Mortgage Really That Much Crazier Than a 30-Year One?
• https://www.npr.org/sections/planet-money/2025/11/18/g-s1-98040/is-a-50-year-mortgage-really-that-much-crazier-than-a-30-year-one

Featured Resource: Gary Stevenson

Robin references the work of former interest rate trader and economic commentator Gary Stevenson throughout this episode.

• The Economy Is Rigged for Billionaires (Prof G Podcast featuring Gary Stevenson)
• https://podcasts.apple.com/us/podcast/the-economy-is-rigged-for-billionaires-ft-gary-stevenson/id1498802610?i=1000766587939
• Gary's Economics (YouTube Channel)
• https://www.youtube.com/garyseconomics

Featured Resource: Gabriel Zucman

Economist Gabriel Zucman is one of the leading researchers on wealth inequality, taxation, and global wealth concentration.

• Gabriel Zucman's Website & Research
• https://gabriel-zucman.eu/
• A Blueprint for a Coordinated Minimum Effective Taxation Standard for Ultra-High-Net-Worth Individuals
• https://gabriel-zucman.eu/files/report-g20.pdf

New Zealand: Housing, Austerity & Social Policy

During the episode, Robin and Jaime discuss how other countries are grappling with many of the same challenges around housing affordability, inequality, and economic policy.

• Per Capita: New Zealand Shows Austerity and Interest Rate Hikes Won't Cure Australia's Sticky Inflation
• https://percapita.org.au/new-zealand-shows-austerity-and-interest-rate-hikes-wont-cure-australias-sticky-inflation/
• Associated Press: New Zealand Public Sector Job Cuts
• https://apnews.com/article/public-sector-job-cuts-new-zealand-willis-c862d58680c108ffa8bdb9095292f960
• Green Party of New Zealand: Public Housing Reform Cuts Costs at the Expense of Our Most Vulnerable
• https://www.greens.org.nz/national_s_public_housing_reform_cuts_costs_at_the_expense_of_our_most_vulnerable
• Radio New Zealand: Budget 2026 a Washout for Struggling Families, Advocates Say
• https://www.rnz.co.nz/news/political/596645/budget-2026-a-washout-for-struggling-families-advocates-say
• Radio New Zealand: Move-On Orders Will Criminalise Children Experiencing Homelessness, Public Health Experts Say
• https://www.rnz.co.nz/news/te-manu-korihi/598256/move-on-orders-will-criminalise-children-experiencing-homelessness-public-health-experts