{
  "id": 478152,
  "title": "K-shaped economy is dead in US? Robert Reich points to McDonald's earnings — ‘Even CEOs are admitting...’",
  "url": "https://urgent.news/2026/08/10/k-shaped-economy-is-dead-in-us-robert-reich-points-to-mcdonalds",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-10T15:01:00.000Z",
  "source": {
    "name": "Live Mint",
    "slug": "live-mint",
    "url": "https://www.livemint.com/news/us-news/kshaped-economy-is-dead-in-us-robert-reich-points-to-mcdonalds-earnings-even-ceos-are-admitting-11786371276888.html"
  },
  "original_language": "en",
  "account": "Treasury Secretary Scott Bessent believes the US economy has moved past the K-shaped divide, but economist Robert Reich disputes this notion, highlighting McDonald's earnings and consumer behavior. Bessent cited the Bureau of Labour Statistics data showing a 5.5% increase in weekly earnings for full-time workers in the second quarter. He claimed the lower-wage earners are gaining from faster wage growth, including policies like eliminating taxes on tips. However, Reich argues the K-shaped economy is still very much alive, pointing to McDonald's decline in visits from lower- and middle-income customers in the first quarter of 2025 due to affordability issues. He emphasizes that 70% of the US economy depends on consumer spending, and stagnant wages and inflation are weakening the buying power of lower-income households. Reich asserts that the economy is a \"two-tier system,\" with consumers earning over $100,000 in a stronger position compared to middle- and lower-income consumers facing greater pressure.",
  "summary": "Treasury Secretary Scott Bessent claimed that the K-shaped economy is over in the US, stating that lower-income workers are beginning to regain ground in terms of wages. However, economist Robert Reich disputes this view, pointing to McDonald's earnings and consumer behavior as evidence that the K-shaped economy is still very much alive. Reich argues that stagnant wages and inflation are weakening the buying power of lower-income households and that the contrast shows a two-tier economy, with those earning more than $100,000 in a stronger position while middle- and lower-income consumers face greater pressure.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "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."
}