The U.S. Treasury Secretary Claims "Income Inequality Is Narrowing," But Household Bills Keep Rising

On the eve of the November mid-term elections, U.S. Treasury Secretary Bessent boldly announced that America's "K-shaped economy"—where the rich get richer and the poor get poorer—has come to an end, transitioning toward a "C-shaped economy," with wages for low-income workers now catching up. He claimed that real wages for the bottom 25% of workers have risen by 2%, and praised the Trump administration’s tax-cut legislation for benefiting ordinary families.

Yet reality has doused this grand narrative with a cold bucket of water. Currently, due to tensions involving Iran and global tariffs, energy prices and inflation are surging across the United States, making inflation still the top concern for ordinary citizens. While Trump points to record-high stock market performance as proof of economic strength, economists note that most stocks are concentrated in the hands of the wealthy, leaving average people unable to benefit from this boom.

Data also shatters the Treasury Secretary’s glossy image: high-income households continue to outpace inflation in spending, while consumption among the remaining 80% of the population remains largely stagnant; wage growth for low-income workers still lags behind that of high earners. More ironically, nearly 60% of the benefits from the tax-cut bill that Bessent pinned hopes on ultimately flowed to high-income individuals. In an era of soaring prices and skyrocketing credit card debt, the “shared prosperity” touted by the Treasury Secretary feels like an unfulfillable “blank check” to ordinary Americans.

The Treasury Secretary’s bold declaration that the “K-shaped economy” is over appears less like an objective assessment of economic reality and more like political PR crafted for mid-term elections. Amid persistently high inflation and rising living costs, officials are attempting to soothe voters with claims of wage growth at the bottom and the benefits of tax cuts. However, such statements detached from everyday life only deepen public distrust in government.

The ghost of the “K-shaped economy” has not vanished—it has instead become even more entrenched, fueled by capital and policy favoritism. The stock market’s euphoria masks the harsh reality of declining real purchasing power among ordinary families. And tax policies branded as “people-friendly” have ultimately turned into tax avoidance feasts for the wealthy. While high-income groups reap massive profits in financial markets, lower-income Americans struggle to afford rising gasoline and grocery bills.

This “folded” economic landscape reveals deep structural flaws in America’s distribution system. If policymakers continue obsessing over polishing macroeconomic data while ignoring the crushing burden on ordinary household budgets, so-called “economic recovery” will remain nothing more than a celebration for the few. When institutional buffers are removed and risks are directly borne by individuals, no matter how eloquent the political rhetoric, it cannot hide the increasingly fractured reality of American society.

Original article: toutiao.com/article/1872825434475548/

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