The end of the K-shaped economy — or not

**SPEAKER_1** (0:00)
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**Kimberly Adams** (0:31)
What's the shape of this economy? Pick a letter and send a letter while you're at it.
From Marketplace in Washington, I'm Kimberly Adams. The K-shaped economy is over, according to Treasury Secretary Scott Bessent. Instead, he says we are now in a C-shaped economy, where wage growth for those at the bottom is outpacing wage growth for those at the top. But is that a fair characterization? Marketplace's Samantha Fields asked around.

**Samantha Fields** (0:59)
Let's first define what we even mean when we say K-shaped economy.

**Breon Williams** (1:03)
We're talking about one economy with two different experiences, depending on where you fall in the income distribution.

**Samantha Fields** (1:12)
Breon Williams is Chief Economist at the Groundwork Collaborative.

**Breon Williams** (1:15)
What that means is the top is pulling away and everyone else is treading water in terms of paychecks, in terms of spending, in terms of wealth, in terms of how you're feeling about your finances.

**Samantha Fields** (1:28)
So is there evidence that this tale of two economies is behind us?

**Breon Williams** (1:32)
That's just not ringing true in most of the data.

**Samantha Fields** (1:36)
There are still big gaps in how people feel about the economy and how they're spending, Williams says. Booty's Analytics shows people who make over $200,000 a year have been spending more lately, while spending for everyone else is pretty flat.
And data from the Atlanta Fed shows wages for the highest paid workers still climbing faster than wages for the lowest paid workers. But Ryan Nunn at the Yale Budget Lab says that gap has been narrowing some in the last few months.

**Ryan Nunn** (2:04)
I think we've seen a more even pattern recently in wage growth, but I would like to see more data, particularly in the labor market, looking at wage growth.

**Samantha Fields** (2:13)
Before saying with confidence that we're moving away from a K-shaped economy. I'm Samantha Fields for Marketplace.

**Kimberly Adams** (2:20)
And the US. Postal Service is reporting a $2.5 billion net loss for the third quarter of the fiscal year. That number is down from the same time last year, when the USPS lost more than $3 billion.
The agency continues to battle a fiscal crisis and is asking Congress for permission to raise the prices of stamps in January, instead of waiting until next summer to try and help stem the losses. In June, the Postmaster General warned that the agency was already out of cash and was borrowing from employee retirement funds to keep services operational. In case you haven't sent a card or a letter in a while, the current price of a First Class Forever stamp these days for door-to-door delivery service is 82 cents.

**SPEAKER_1** (3:18)
Running a business is hard enough, so why make it harder with a dozen different apps that don't talk to each other? Introducing Odoo, the only business software you'll ever need. It's an all-in-one fully integrated platform that makes your work easier.
From CRM, accounting, inventory, e-commerce, and more. And the best part, Odoo replaces multiple expensive platforms for a fraction of the cost. This is why over thousands of businesses have made the switch. So why not you?
Try Odoo for free at odoo.com. That's odoo.com.

**SPEAKER_6** (3:48)
This podcast is supported by Raymond James, a financial firm offering wealth management, banking, and capital market services that are inspired by people.
Before Raymond James' financial advisors build plans, they build relationships so they can craft individual strategies designed to achieve priorities and pursue what's possible. That's the power of personal. Disclosures at raymondjames.com. Raymond James and Associates Inc. Member NYSE SIPIC.
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**Kimberly Adams** (4:53)
The White House is once again trying to fire Federal Reserve Governor Lisa Cook. The move comes after the Supreme Court blocked the Trump Administration's previous effort without addressing key questions about the Fed's independence. Marketplace's Nova Sapo has more.