Officials and economists debate shifting definitions of economic inequality

The short version

• Treasury Secretary Scott Bessent and business executives are advocating for the term C-shaped economy to describe improving conditions for lower- and middle-class Americans.[NPR]
• The framing challenges the pandemic-era K-shaped label, which economists note originally denoted rising fortunes for the rich alongside declining fortunes for the poor.[NPR]
• Inflation-adjusted weekly earnings have increased at the lower end of the wage scale while falling at the top, though severe wealth concentration persists.[NPR]
• Economists caution that definitive evaluations are difficult due to inconsistent data across different metrics.[NPR]

Key facts

• Treasury Secretary Scott Bessent stated that a C-shaped economy better describes how lower- and middle-class Americans are faring than a K-shaped model.[NPR]
• Christopher Nassetta, the head of Hilton Hotels, similarly characterized the economy as C-shaped regarding the middle class.[NPR]
• Adjusted for inflation, weekly earnings increased at the lower end of the income scale and fell at the upper end.[NPR]
• The wealthiest one percent of Americans own one-third of the country's wealth, while the bottom half owns less than three percent.[NPR]
• The U.S. poverty rate increased from 7.8% in 2021 to 12.4% in 2022 following the expiration of pandemic stimulus programs.[NPR]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.

• Has the economy gone C-shaped?NPR - Top News