US Treasury Secretary Bessent declares end of K-shaped economy as lower earners see 5.5% wage growth

Treasury Secretary Scott Bessent is making a bold claim: the era of the rich getting richer while everyone else treads water is over. In an August 4 announcement, Bessent declared the death of the so-called “K-shaped economy” and the birth of what he’s calling the “C economy,” where growth is broader, more equitable, and tilted toward the people who need it most. The numbers backing his case are genuinely striking. Workers in the bottom 25% of earners saw wages climb 5.5% year-over-year, while those in the top quartile managed just 1.5%. Meanwhile, core CPI inflation dropped to 2.5% in July 2026, its lowest reading in five months. That means lower-wage workers aren’t just getting bigger paychecks on paper. They’re actually gaining purchasing power. The K-shaped recovery is dead, apparently For anyone who lived through the post-COVID economic recovery, the K-shaped economy became a familiar, frustrating concept. Asset owners, typically wealthier Americans, watched their portfolios and home values surge. Workers in service industries, gig roles, and hourly positions saw their real wages eroded by inflation. Two groups, two very different trajectories, shaped like the letter K. Bessen...