Story perspectives

Bessent Says K-Shape Ends, C-Recovery Begins Amid Dispute

8/11/2026

Summary

Story summary

U.S. Treasury Secretary Scott Bessent declared the K-shaped economy “over” and a C-shaped recovery.
Scott Bessent cited BLS data showing 25th-percentile earnings rose 5.5% in Q2 2026 while the 75th percentile rose 1.5%.
Economist Robert Reich countered with data on a double-digit decline in lower- and middle-income McDonald’s visits in Q1 2025.
Moody’s Analytics chief economist Mark Zandi said the K-shape remains intact, driven by households earning over $175,000.

History

Historical Context

The 2008 crisis began when Lehman Brothers filed for Chapter 11 on September 15, 2008, triggering a market plunge and a $787 billion TARP program overseen by Treasury Secretary Henry Paulson in 2009 while the Federal Reserve cut rates to 0 %. In 2026, Treasury official Scott Bessent declared the K-shape recovery over, citing BLS data that the 25th-percentile wage grew 5.5 % versus 1.5 % for the 75th-percentile.

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Story summary

U.S. Treasury Secretary Scott Bessent declared the K-shaped economy “over” and a C-shaped recovery.
Scott Bessent cited BLS data showing 25th-percentile earnings rose 5.5% in Q2 2026 while the 75th percentile rose 1.5%.
Economist Robert Reich countered with data on a double-digit decline in lower- and middle-income McDonald’s visits in Q1 2025.
Moody’s Analytics chief economist Mark Zandi said the K-shape remains intact, driven by households earning over $175,000.

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