Scott Bessent declares K-shaped economy is over

U.S. Treasury Secretary Scott Bessent has declared that the "K-shaped economy" is over, suggesting instead the emergence of a "C economy." Bessent noted that the lower end of wage earners are recovering, citing a 2% wage gain for the bottom 25% of workers as evidence of this shift.

However, some reports suggest that economic data does not yet align with this assessment. Critics point to a widening divide where higher-income households prosper from rising asset prices and strong equity markets, while lower-income households continue to struggle.

Further analysis mentions a shift toward a financialized economy, where economic health is increasingly evaluated by stock market movements and shareholder value rather than traditional metrics like production or rising standards of living.