Treasury Secretary Scott Bessent declared that America's long-running divide between higher- and lower-income households is effectively over, arguing wage growth at the bottom of the pay scale has begun to outpace gains for top earners. His remarks immediately collided with a broader body of economic data that suggests the picture remains far more complicated.
Bessent said this week he was 'sick of hearing about this K-shaped economy' and insisted the pattern of wealthy Americans pulling further ahead while lower-income households struggled no longer reflected economic reality. Instead, he argued the economy was becoming more 'C-shaped', with lower-paid workers beginning to close the gap.
