Most of the US economy is in a recession
2 days ago
- #recession
- #tech spending
- #US economy
- Most of the US economy is in a recession, according to veteran strategist Jim Paulsen.
- Tech spending ('new era' economy) is propping up GDP growth, masking struggles in the 'old era' economy.
- Excluding 'new era' investment, 89% of real private spending grew only 1% with no job creation.
- New era spending (e.g., AI, tech) grew 14% in 2025, while traditional private spending grew just 1%.
- The gap between new era and old economy resembles the Mag 7 vs. the rest of the S&P 500.
- Public sentiment on the economy remains negative despite GDP growth, reflecting this bifurcation.