We’re living in the ‘premium economy’ economy | CNN Business

The biggest economic buzzword of the last few years is “K-shaped.” CEOs, economists and lawmakers all use the letter K to describe the divergence between the haves and have-nots in America’s economy, from the housing market to spending on gas. The wealthiest people in America have split from the poorest. The war in Iran is making it worse, squeezing low-income households that spend the largest portion of their income on gas and necessities. But it’s now becoming clear that the income distribution in America is not shaped like a K, and the letter is the wrong way to explain the economy. A new way of explaining America’s economic puzzle is needed: the “premium economy” economy. More Americans have left the cramped, no-frills service of life in basic economy and moved up to premium class. They can afford the nicer flights, better groceries and fancier experiences of this upgraded section, but can’t reach the high-touch, hot towel service of home ownership and retirement in the next class. Despite a growing chunk of people entering the ranks of the upper middle class and even becoming millionaires, they feel like they’re falling behind. That’s because owning a home,