K-shaped economy: Boomers are FLUSH, Gen Z isn't: First Trust Advisors chief economist

• The K-shaped economy is seen as a result of quantitative easing, which has tripled the money supply since 2008, benefiting asset owners (Baby Boomers) and creating wealth disparity.
• This economic bifurcation is influencing politics, with younger generations (Gen Z) increasingly viewing socialism favorably due to perceived inequality.
• Current interest rates are considered 'pretty normal' relative to inflation, and the economy (excluding housing) is described as 'running pretty hot,' despite rising global debt and demand from AI investments.

The discussion centers on the 'K-shaped economy,' attributing wealth inequality to quantitative easing (QE) which has disproportionately benefited asset holders (Baby Boomers) over younger generations (Gen Z). It highlights consumer spending trends, the Federal Reserve's monetary policy, and the importance of money supply in economic analysis, suggesting current interest rates are 'about right' despite underlying political and economic bifurcations.