Economists are usually so differently opinionated that they couldn’t agree on the color of an orange. Nevertheless a consensus has emerged that identifies America’s current economy as increasingly “K-shaped.” Wealthy households see stupendous gains while paycheck-to-paycheck households are squeezed by inflation and stagnant wages. A few from the shrinking middle class join the upward wealth spiral. Many more increasingly struggle, especially after health issues. This is not an unfounded conspiracy theory but is based on well documented data.

Ten percent of Americans own ninety percent of the stock market. Just one percent of Americans own fifty percent of all stocks and pay little, if any, taxes. The ultra-wealthy have sufficient money to sway public opinion and affect government policy to their advantage.

Because a few control an ever increasing proportion of the national wealth, businesses are shifting focus to premium services and luxury goods. Like boating? Plenty of opulent super yachts are available. Multi-million-dollar home sales are increasing while fewer families manage to own any home. Dramatic stratification represents most of human history; Rome, Europe, Egypt, China.  Most American economists believe the “K-shaped” economy has come to stay.

“This is obvious,” you might say.” But some economists warn we could face a more dire challenge. On February 26^th, 2026, an Internet company, Block, announced layoff of nearly half of its employees. They cited “using AI to automate more work.” At the time, Block was more profitable than over half of S&P 500 companies. Not surprisingly, Block’s share price soared by 24% the following day as investors anticipated more profitability due to AI. Other profitable mega-companies have recently announced major staff reductions due to AI or other technological advancements.

Nearly every American’s lifestyle has benefitted from new technologies. But economists are reporting that humanity could be entering an “Engels’ Pause.” That term comes from Britain’s Industrial Revolution, roughly 1780s to 1850s, in which rapid technological advancements eliminated tremendous numbers of jobs. Incomes of wealthy entrepreneurs soared above that of kings while workers’ wages stagnated and millions of families were forced into poverty. Charles Dickens described that period as, “It was the best of times. It was the worst of times.”

Some Christians brush off this threat by expecting Jesus’ imminent return. I personally hope Jesus comes ASAP. But Jesus hasn’t fulfilled that promise for 2,000 years even during more dire circumstances. He might not return for centuries.

I’m urging readers to think generationally for the financial good of their descendants. Adults should impress upon their children and grandchildren the necessity of developing completive job skills. I became an engineer because my parents and grandparents traumatized me with stories of the Depression. I also recommend making sacrifices to create a substantial income-producing nest egg. This ultimately makes possible more generosity to good purposes.

Thank you for listening to my heartfelt concerns. “Ideas for generational financial stability” with recommendations for teenagers, adults, and seniors is available on this website under Free Downloads above.

Drew