Susan Hayes Culleton

Christmas is indeed a time of increased spending.

And while higher prices affect everybody, the K-shaped economy shows inflation doesn't affect everybody equally.

Austin Hughes, economist, joins me to discuss this more.

Austin, the K-shaped economy, it's a phrase I've heard over and over and over again in 2025, particularly actually in the US.

Can you bring us through what it means?

Well, when you talk about how much people are likely to spend at Christmas, I saw this from Moody's, Austin, that the percentage of overall spending done by the top 10% of the socioeconomic spectrum has risen from 36% to nearly half since 1989.

And what does this mean then for the consumer side of the economy, whether that would have an impact on retailers, etc.

?

But is there an issue here too?

I think that there might possibly be a silent, huge influence in the fact that we're now dealing with a massive intergenerational wealth transfer as well, Austin.

Does that entrench the K-shaped economy?

And if I could ask you in 30 seconds, Austin, on the other hand, don't we have a highly, highly progressive tax system to enable transfer payments to happen within the country too?

We'll have to call it there.

Thank you very much indeed, Austin Hughes, economist.

Breakfast Business with Enterprise Ireland on Newstalk.

Well, if 2025 was a year of uncertainty about the Trump tariffs, 2026 is the year of heightened geopolitical volatility.

That's the warning from EY Ireland, whose co-head of geopolitical strategy, Simon McAllister, joins me now.

First, Simon, let's bring our listeners up to date on the merchandise exports from the first 10 months of the year.

They're up 22% to €228 billion.

Of that, medical and pharma comprise 55% and exports to the US are up 75% so far this year.