Economists Clash Over Whether US Economy Is K-, C-, or E-Shaped
US economic leaders and analysts are debating whether the economy remains 'K-shaped' (diverging incomes), has shifted to 'C-shaped' (converging incomes), or is 'E-shaped' (three stable but unequal groups). Treasury Secretary Scott Bessent argues the K-shape is over, citing wage gains and tax cuts for lower earners. However, consumer sentiment remains weak, credit card debt is near record highs, and rising energy costs from the Iran conflict may offset gains for low-income households, suggesting the K-shape persists.
