Bessent Backs 'C-Shaped' Economy as 4.1% Unemployment Masks 1% Wealth Gap
Updated
Updated · wnyc.org · Sep 8
Bessent Backs 'C-Shaped' Economy as 4.1% Unemployment Masks 1% Wealth Gap
1 articles · Updated · wnyc.org · Sep 8
Summary
Scott Bessent embraced Hilton CEO Christopher Nassetta’s “C-shaped” economy label, arguing lower- and middle-income Americans are faring better than the old “K-shaped” narrative suggests.
One data point supports that case: after inflation, weekly earnings rose for lower-wage workers while falling for higher-wage workers, pointing to some narrowing in wage inequality.
Economists cited in the report say the labels blur very different measures, mixing wages, income and wealth; they argue the original “K-shaped” idea described the poor getting poorer as the rich got richer after pandemic relief faded.
The broader wealth divide remains stark: the top 1% hold about one-third of U.S. wealth, while the bottom half own less than 3%, a gap critics say a single letter cannot capture.
Recent labor data underline that complexity, with unemployment at 4.1% even as jobless claims rise, businesses cut jobs and hundreds of thousands leave the workforce.