The David Lin Report · Monday, August 10, 2026
Jim Welsh explains the concept of a 'K-shaped' or bifurcated economy, where the bottom third of wage earners are struggling with the cost of living, while the top 10% are driving consumer spending. He argues that as long as the top income bracket continues to spend, which is evidenced by strong TSA checkpoint numbers, a material slowdown in GDP is unlikely, despite some individuals feeling the economic pinch.
“The bottom third of wage earners, David, are under the gun in terms of the cost of living increases that we've seen over the last five years.”
“The top 10% of wage earners. Uh, represent 50% almost 50% of consumer spending. And so what you have is this bifurcated economy.”
“You look at the, uh, the TSA checkpoints. You're like at 2.6 million, 2.7 million every single weekend. So those are areas of strength.”