# Reich disputes Bessent, says US K-shaped economy alive 2026-08-10T16:05:09+00:00 | World & Diplomacy | Indian Opinion Desk Corroboration: 1 independent outlet Treasury Secretary Scott Bessent declared the K-shaped economy dead, saying lower-income workers are finally regaining ground. Economist Robert Reich has pushed back forcefully, calling the claim 'hogwash'. He points to McDonald's earnings, where visits from lower- and middle-income customers fell by double digits in the first quarter of 2025, as evidence that the divide between rich and poor remains deep. Bessent cited Bureau of Labor Statistics data showing weekly earnings for the 25th percentile rose 5.5% year-on-year in the second quarter, while CPI climbed 3.9%. Other economists are split: Moody's Mark Zandi says the K-shape is 'firmly intact', while the National Retail Federation's Mark Matthews sees a persistent divide but notes lower-income spending has risen. Reich warns that stagnant wages and inflation are squeezing the 70% of US economy driven by consumer spending. ## Coverage - livemint.com Tags: income inequality, K-shaped economy, McDonald's, Robert Reich, Scott Bessent, US economy Canonical: https://indianopinion.org/reich-disputes-bessent-says-us-k-shaped-economy-alive/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/reich-disputes-bessent-says-us-k-shaped-economy-alive/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.