Does the U.S. have a 'K-shaped economy'? What it means for you.

Picture the letter K.

On the right side, you can see the upper diagonal heading up, while the one on the bottom falls to the ground. Now substitute upper-income Americans for the topmost diagonal, heading up and away, and lower-income folks for the one on the bottom and you can understand why comparing our economy to the shape of a “K” resonates for many people.

Beyond helping explain why many Americans feel they’re falling behind, the K-shape phenomenon is a reminder that economic policies have real-life impacts, said Diane Swonk, chief economist for KPMG US, and a warning that the divergence between fortunes for more affluent people and the rest of the country isn’t healthy.

The 'Gini coefficient' is a technical analysis of the gap between the rich and the poor.

“Inequality as measured by the 'Gini coefficient' is at its second-highest level on record,” Swonk said. “It is at a level that's more corrosive than conducive to growth.”