{
  "id": 189589,
  "title": "Scott Bessent just declared the K-shaped economy is over, saying he’s ‘sick of hearing about’ it—but the data would beg to disagree",
  "url": "https://urgent.news/2026/08/05/scott-bessent-just-declared-the-k-shaped-economy-is-over-saying-hes",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-05T11:47:51.000Z",
  "source": {
    "name": "Fortune",
    "slug": "fortune",
    "url": "https://fortune.com/2026/08/05/scott-bessent-is-sick-of-hearing-about-the-k-shaped-economy-and-declares-its-overbut-the-data-would-beg-to-disagree/"
  },
  "original_language": "en",
  "account": "Scott Bessent announced the K-shaped economy has concluded, yet the numbers refute his assertion. The Treasury Secretary expressed exasperation over the term, claiming the K-shaped economy is no more. Instead, Bessent posited a C-shaped economy, where lower-income earners are regaining wage progress, reminiscent of President Trump's tenure. He cited a 2% real wage increase for the bottom 25% of workers, likely referencing 2025 Treasury data showing blue-collar workers experiencing growth of 1.7% in the first half of Trump's presidency. Bessent also highlighted the positive impact of the One Big Beautiful Bill Act, which provided an average tax cut of 15% for those earning between $15,000 and $80,000, as well as benefits for tipped and overtime workers. However, upon closer examination, the data contradicts Bessent's perspective. While the 2% wage growth for the bottom quintile might seem promising, the Federal Reserve Bank of Atlanta's June update revealed that median wage growth for this group did not surpass that of the top 25%. Instead, the third quartile experienced the most significant wage growth throughout 2026. Moreover, wealth gains tied to the equity boom, primarily benefiting higher earners, further deepen the economic divide. The majority of the $1.5 trillion spent in the equity market, as cited by RSM's chief economist Joe Brusuelas, flows to the top income quintile. Consequently, the K-shaped economy, characterized by the privileged thriving and the rest lagging, remains in full force.",
  "summary": "\"I can say here definitively, the K-shaped economy is over.\"",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "MarketWatch",
        "title": "Bessent defends Warsh, saying markets are going through ‘detox’ from too much Fed guidance",
        "url": "https://urgent.news/2026/08/04/bessent-defends-warsh-saying-markets-are-going-through-detox-from-too",
        "published": "2026-08-04T16:25:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}