The Economy’s Shape Shift: Is It Still K, or Has It Turned to C or E?
Economists and policymakers are debating whether the U.S. economy remains in a K-shaped recovery or has shifted toward C- or E-shaped divergence, citing wage gains for lower earners, tax policy shifts, weak consumer sentiment, energy costs, and near-record credit-card debt as factors shaping the debate; some executives see middle-class gains while others warn the structure may be stabilizing without fully closing gaps.