C-shaped economy
Coverage of C-shaped economy in the Nexus archive.
- The K-shaped economy isn't dead yet
The debate over whether the U.S. economy remains K-shaped (diverging outcomes for high and low earners) or has shifted to a C-shaped (converging outcomes) continues. Treasury Secretary Scott Bessent claims the K-shaped economy is over, citing wage growth for lower earners and moderating housing inflation, while analysts argue data shows limited convergence and persistent inequality.
- Scott Bessent is ‘sick of hearing about’ the K-shaped economy and declares it’s over—but the data would beg to disagree
Scott Bessent claims the K-shaped economy is over, asserting a C-shaped economy where lower-wage earners are catching up. However, data from the Federal Reserve Bank of Atlanta and analyses from Goldman Sachs and Morgan Stanley suggest wage growth disparities persist. Bessent credits the One Big Beautiful Bill Act for improving household finances, though its economic benefits may be offset by factors like gasoline price fluctuations.