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Treasury Secretary Scott Bessent wants Americans to stop worrying about the wealth gap. On CNBC’s “Squawk Box” on Aug. 4, he said he was “sick of hearing about this K-shaped economy” and declared, “I can say here definitively, the K-shaped economy is over.”In his telling, the country has shifted into what he called a “C-shaped economy,” where lower-wage workers are finally closing ground on wealthier households. It’s a bold claim heading into the midterms. It’s also one that several economists say the data don’t support.What Bessent is pointing to on the K-shaped economyBessent’s case rests on two pillars. First, he cited a 2% real wage gain for blue-collar workers, likely referencing a 2025 Treasury report showing blue-collar wage growth for hourly workers rose 1.7% during the first five months of President Donald Trump’s current term, the strongest such gain in nearly 60 years. “The only other time it has been this high was during President Trump’s first term,” Bessent said, describing a C-shaped economy “where the lower end of wage earners are finally calling it back, just like they did in President Trump’s first term.”Second, he leaned on the One Big Beautiful Bill Act, the tax package that introduced new, temporary tax deductions for workers receiving overtime pay and seniors on Social Security. The White House has promoted the law as delivering one of the largest tax cuts in history, with an average 15% cut for households earning between $15,000 and $80,000, according to the White House.More Economy:Bank of America CEO warns inflation will back Fed into a cornerBank of America just made a strong call on inflation, economyGoldman Sachs says Americans may pay for the AI boomThis framing isn’t new. At the American Bankers Association in April 2025, Bessent said “it’s Main Street’s turn,” as TheStreet reported. He has been saying versions of that ever since. The data just haven’t moved as fast as the talking points.The Federal Reserve Bank of Atlanta’s Wage Growth Tracker, a 12-month moving average by income quartile, showed the bottom 25% of earners posting 3.6% wage growth in June, and 3.9% for the top quartile. At no point in 2026 has bottom-quartile wage growth actually overtaken the top.Where the wage and tax numbers push back on Bessent’s claimsMoody’s chief economist Mark Zandi wrote last month that the K-shaped economy is still very much alive. His evidence: Fed data showing that households earning $200,000 or more grew their spending 6.5% in the year through Q1 2026, close to 4% in real terms, according to Fast Company.Meanwhile, the bottom 80% spent the same as the year before, after adjusting for inflation. Same dollars. Higher prices.The tax-cut math has also hit a wall at the gas pump. Goldman Sachs and Morgan Stanley both say the Iran conflict’s effect on fuel prices has eaten through most or all of what lower earners were supposed to gain from the One Big Beautiful Bill Act. Goldman puts the annualized household hit at around $140 billion. That wipes out a significant chunk of the promised windfall before it reaches anyone’s wallet.Then there’s the stock market, which has been doing a lot of the heavy lifting in this recovery. According to RSM Chief Economist Joe Brusuelas, roughly three-quarters of the spending generated by the AI-driven equity rally flows through the top income quintile. “If we are counting on the stock market to sustain the consumer economy, we are leaning on a channel that deepens the K-shape rather than offsets it,” Brusuelas said, according to CNN.Not every data point cuts against Bessent. Bank of America Chief U.S. Economist Aditya Bhave noted last week that consumer spending, excluding gas, had briefly stopped trending K-shaped on a year-over-year basis. But Bhave attributed that mostly to a favorable base effect and a temporary drop in gas prices, not a structural narrowing of the gap.

Moody’s Chief Economist Mark Zandi wrote last month that the K-shaped economy is still very much alive.Michael/Getty Images

A pattern of optimistic framingThis isn’t the first time Bessent’s public statements have run ahead of the underlying numbers. He recently told lawmakers that the federal deficit had already fallen to 5.5% of GDP, a figure Treasury has yet to reconcile with the Congressional Budget Office, which projects a 5.8% deficit for fiscal 2026. Treasury has not publicly detailed how it arrives at the lower figure.Even as he has talked down concerns about inflation and rates, the bond market has kept sending a different signal, with long-term Treasury yields holding well above where they started the year. That pattern matters here. Bessent’s K-shaped declaration isn’t just a talking point. It’s meant to reassure voters and markets that the benefits of this administration’s policies are reaching everyone, not just asset holders. The data suggest that reassurance is, at best, premature.The bottom line on the underlying economyBlue-collar wages are up. That’s real. But real wages being up doesn’t mean the K flattened into a C. The top quartile still outpaces the bottom on wage growth. Top earners are spending more; bottom earners aren’t. The equity rally keeps flowing to people who own equities. Bessent changed the letter of the curve, while economists say the shape is the same.Investors watching Washington for signals on consumer strength should treat Bessent’s declaration as aspiration rather than data. The economists tracking the actual numbers, from the Atlanta Fed to Moody’s to RSM, are telling a story that hasn’t changed nearly as much as the Treasury Secretary suggests.Related: Scott Bessent sends strong message on oil price and Iran

Grindr (GRND) just told investors that artificial intelligence (AI) now runs through everything it builds.On August 6, CEO George Arison walked through second-quarter results with a claim that stood out even in a market full of AI announcements. He said the dating platform now works as an AI-native company, from the code up.The numbers behind that claim are big, and so is the plan tied to them. Grindr is charging as much as $350 a month for a new AI companion feature. Arison says the technology is already paying for itself.For anyone who owns the stock, or is watching the dating app sector, the quarter raises one clear question. Does this AI story justify the price, or is the market right to wait and see?What George Arison revealed about Grindr’s AI shiftGrindr says its total engineering output rose about 2.5 times between July 2025 and April 2026. It did this without adding more engineers.To put that in perspective, matching that output the old way would have taken about 200 more engineers. More AI Stocks:Nvidia dominates AI chips, but BofA sees AMD closing inBank of America sends strong verdict to Meta stock investorThe AI honeymoon appears over amid stock sell-offThat would have cost roughly $60 million a year, according to the earnings presentation.Arison told CNBC the company’s strategy has always been to use AI everywhere it can. The engineering team relies on coding tools built by Cursor, Anthropic’s Claude, and Devin.The cost of this shift is small next to the payoff. Grindr expects to spend about $6 million this year on the AI tokens that power these tools. Arison called it an easy trade.Why Grindr’s Q2 revenue growth backs the AI claimA strategy only matters if the results back it up, and the second quarter gave Arison plenty to point to.Revenue reached $138 million, up 33% from a year earlier, according to a press release. That beat Wall Street’s estimate of about $132 million.Paying users grew 16% to 1.4 million. Average revenue per paying user rose to $26.51. Together, those numbers show subscribers are staying and spending more, not just being squeezed by price hikes.The company’s management raised its full-year guidance because of this strong quarter. Grindr now expects 2026 revenue of about $540 million, up from $535 million, and adjusted EBITDA of about $232 million.The company also pointed to a first-quarter partnership with Madonna as a boost to its cultural reach. 

Grindr CEO George Arison says the company now operates as an AI-native organization after rebuilding its engineering around generative AI.SOPA Images / Getty Images

The EPS miss investors need to weighThe quarter wasn’t perfect. Grindr posted GAAP earnings of $0.10 per share. Analysts had expected about$0.14. That gap explains the market’s muted reaction. When strong revenue comes with a profit miss, investors tend to pull back, and Grindr shares slipped in the days around the report.The pressure also showed up in margins. According to Investing.com, adjusted EBITDA margin came in at 42%, down from 43.4% a year earlier, as the company spent more to launch new products.Grindr is spending now to build features it hopes will pay off later. That payoff hasn’t shown up in profit yet.Grindr’s $350 Edge tier and the bet on premium AIThe most eye-catching new product is Edge, an AI companion tier Grindr is testing at prices up to $350 a month in markets like New York,  CNBC noted.That price is closer to luxury software than a typical dating subscription. It only makes sense if enough users see the app as essential, not optional.Early testing surprised the company in a good way. Arison said management expected only its highest-paying subscribers to upgrade to Edge. Related: Meta layoffs take disturbing turn in new lawsuitInstead, the data showed a wider mix of users moving up, including people who didn’t subscribe to anything before.Grindr hasn’t said how many users have signed up for Edge, or where the price will settle. How the stock performs in the near term depends a lot on whether this demand holds once the initial hype fades.Where Grindr wants to take the platform nextArison’s plan goes beyond dating. He wants Grindr to grow into a wider platform for the LGBTQ+ community. That means adding hotel bookings, local venue recommendations, and a dedicated health center through its Woodwork telehealth brand.This is the real case for holding the stock long term. A wider platform gives Grindr more ways to earn money from the same engaged users.The AI efficiency story feeds directly into that goal. Building new features for a modest token cost gives Grindr room to test products that would be too expensive to staff the old way, Business Insider reported.Whether that roadmap arrives on schedule is a separate question that investors will be watching through late 2026 and into 2027.The risks hiding inside the AI strategyJudging engineering success by how much code gets written is controversial. A heavily automated pipeline can create bugs, security flaws, or hidden technical problems that only show up later and frustrate users.Data privacy carries even higher stakes here. Grindr serves the LGBTQ+ community, so feeding chat histories into AI models requires strict rules around user consent. Any data breach could push users away and open the company up to legal risk.What to watch on Grindr before the next reportHere are a couple of things to watch out for before the next earnings report:Edge adoption: Will users keep paying premium prices for AI matchmaking once the testing period ends?Margins: Will spending ease up so revenue growth starts showing up in profit?User trust: Will Grindr’s AI data practices hold up without a privacy incident?Grindr just delivered a real growth quarter built on a bold AI bet. What happens next depends on whether that bet turns into profit, not just faster code.Related: Tech expert predicts an OpenAI collapse

Cassidy, a hold-out Republican vote who switched to a “yes” at the last minute, said Blanche “is not perfect,” but another nominee “may not be as good.”

Millions of Americans hold life insurance contracts purchased decades ago, when their circumstances looked very different from where they stand today. The children have grown up, the mortgage is paid off, and the original reason for that death benefit has faded considerably over the years.Fidelity is drawing attention to a tax code provision that allows policyholders to convert those aging contracts into long-term care coverage without triggering a single dollar in taxes. The strategy involves a mechanism called a 1035 exchange, and it could address one of the largest uninsured risks facing retirees across the country.Roughly 80% of Americans turning 65 today will need some form of long-term care during their lifetime, according to the Center for Retirement Research at Boston College.How the 1035 exchange converts old policies into long-term care coverageA 1035 exchange is a provision under Section 1035 of the Internal Revenue Code that permits a tax-free transfer from one insurance contract to another qualifying policy of similar kind. The Pension Protection Act of 2006 expanded this rule to include qualified long-term care insurance as an eligible destination, with the change taking effect in 2010.David Peterson, head of advanced wealth solutions at Fidelity, outlined scenarios in which policyholders may benefit from exploring a 1035 exchange. Those include situations where the death benefit is no longer needed, where the existing policy is underperforming, or where the policyholder still qualifies for long-term care coverage.David Blount, insurance planning specialist at Investment & Insurance Planning Services, says policyholders should review modification options before committing to a 1035 exchange.Sometimes the policy they already own can be modified, and they don’t need to do a 1035 exchange…It’s important to explore all your options when considering whether to keep life insurance, and that includes 1035 exchangesThe transfer must move directly from the original insurer to the new insurance company to preserve its tax-free status, Fidelity’s Wealth Management Insights team noted. If the policyholder withdraws the funds first and then purchases a new policy separately, the transaction becomes taxable as ordinary income.Long-term care costs exceed $122,000 a year for nursing home residentsAmericans collectively spend more than $400 billion annually on long-term care services, and those costs continue to climb faster than most households can save, JRC Insurance Group reported.The national median cost of nursing home services runs $122,275 per year overall, with private rooms averaging $129,575 and semiprivate rooms $118,500. Assisted living runs approximately $74,400 and home health services about $80,080 annually, the firm noted.Women need an average of 3.7 years of care over their lifetimes while men average 2.2 years, and roughly 20% of those over 65 will require care lasting more than five years, according to the Administration for Community Living.Medicare does not cover most long-term care expenses for retireesMedicare pays for up to 100 days of skilled nursing care following a qualifying hospital stay, but it does not cover custodial or personal care, which represents the vast majority of long-term care spending.Only about 2% to 3% of Americans, roughly 7 to 8 million people, have long-term care insurance, and three-quarters of people aged 45 and older lack adequate financial preparation for those expenses, JRC Insurance Group reported.Families absorb roughly 70% of total long-term care costs on their own, and the average lifetime expense exceeds $150,000.“It’s not always about tax avoidance,” David Blount said in an interview with MassMutual’s blog. “It’s about transferring risk and getting the most benefit you can from your dollars.”Health and timing can disqualify policyholders or shrink the benefit of a 1035 exchangeThe 1035 exchange offers clear tax advantages, but several conditions can disqualify a policyholder or reduce the financial benefit of the transfer, and timing plays a significant role in the outcome. Applicants aged 60 to 64 face denial rates of approximately 30% when applying for long-term care coverage, while that figure rises to 38% for those aged 65 to 69 and reaches 47% for applicants between 70 and 74, according to the American Association for Long-Term Care Insurance.More Fidelity:Fidelity breaks down IRA rules that catch heirs off guardFidelity warns Roth IRA conversions can backfireFidelity, Vanguard have a warning for anyone taking RMDs“In essence, you are able to pull out the accumulated interest that would have otherwise been taxed, and because you are using it to fund a long-term care policy, it is a tax-free transaction,” Aaron Skloff, chief executive officer of Skloff Financial Group in Naples, Florida, told MassMutual in an interview.He cautioned that the exchange may not be appropriate for policyholders whose health has declined since they originally purchased their existing coverage.Surrender charges on the original policy can also reduce the amount of money available for the new contract, and any outstanding policy loans at the time of exchange can trigger unexpected tax consequences on the unpaid balance.What policyholders should consider before initiating a 1035 exchangeThe tax savings are significant, but denial rates climb steeply after age 65, and surrender charges or outstanding policy loans can erode the transfer’s value before a new contract is even issued.Fidelity recommends that policyholders considering a 1035 exchange consult both a financial professional and a tax professional to review current and future insurance needs and understand any tax consequences before initiating the transfer.The 1035 exchange remains a rarely used but legal planning route, and as Fidelity and MassMutual both note, the benefit narrows as underwriting eligibility declines with age.Related: The Long Term Care Insurance Outlook

The hospice industry argues that the current payment system allows for providers to create individual care plans that meet patients’ specific needs.

The digital asset manager’s CIO says large capital pools control up to $200 trillion globally, and just a 1% shift toward bitcoin could unlock massive long-term growth.

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.Why we love this dealStorage in the home is something that people don’t often think about, but always need. Whether you’re an avid collector who needs to store your watches and fitness trackers, or you just want more space for your kitchen items, a standalone storage pantry is the solution. Thankfully, there are plenty of online retailers that have what you need, Amazon being chief among them. In fact, the online giant is selling one at a discounted price that we think is worth your attention. Deals this good don’t tend to last long, though, so we recommend you take advantage before it’s gone for good.The Cofar Steel Farmhouse Storage Cabinet is on sale for only $108, which isn’t something you see often for a piece of furniture of this size. This is one of the most attractive kitchen pantries we’ve seen lately, and the sale price makes it that much better looking. Cofar Steel Farmhouse Storage Cabinet, $108 (was $120) at Amazon

Courtesy of Amazon

Shop at AmazonWhy do shoppers love it?This pantry offers everything you could want in terms of storage space and aesthetics. It’s substantially large, has a practical interior design, and looks amazing in any room. Size-wise, the overall dimensions are 27.56 inches long by 13.78 inches wide by 61.02 inches high. It’s big enough to be a foundational piece of furniture in any room. However, thanks to its rather shallow design, it won’t take up too much valuable square footage on your floor. It also includes a built-in wall-mounting kit, so you don’t have to worry about its height making it top-heavy and falling over.On the inside, the good design continues. It has an extra-large cubby at the bottom with three additional shelves above. Each shelf can handle a total of 120 pounds of weight, meaning you can fill this cabinet to the brim and it’ll hold up just fine. Not only that, but thanks to the dual hinged doors, it’s extremely easy to get items in and out of the cabinet without a lot of struggling, even when storing larger pieces. Thanks to the spacious area between each shelf, you can easily stack dishes or other items as high as you want.Visually, the cabinet is stunning. It has an elegant cross-hatch farmhouse design on the doors, giving it a rustic feel, but with modern lines. What’s more, even though it looks like a traditional wooden pantry, the piece is made from anti-oxidation-treated multi-layered stainless steel. It won’t rust or corrode, and it’s fully waterproof. That makes it even better for keeping in a bathroom than most manufactured wood alternatives. It’s roomy, sturdy, and beautiful. What more could you want in a storage cabinet? It’s also available in five sizes and five colorways.Related: Target is selling a $280 rattan storage cabinet with an adjustable shelf for 77% offAmazon shoppers were very pleased with this cabinet. One claimed, “words barely describe my satisfaction and delight,” adding, “the shelves seem sturdy” and “it is very spacious inside.”Shop more deals Gaious Metal Kitchen Pantry, $85 (was $100) at AmazonRistern White Metal Storage Cabinet, $70 (was $90) at AmazonWashsemba Bold 2-Door Storage Sideboard, $90 (was $100) at AmazonThe Cofar Steel Farmhouse Storage Cabinet may be the best pick for anyone who wants a sturdy and beautiful pantry for their home. It’s large, great-looking, and durable. That’s a triple threat. When you add the current price of just $108, there’s no excuse to pass on this deal.

Berkshire Hathaway booked a near $13 billion gain on investments in the latest quarter, and has put $32 billion of its cash pile to work.

Drake’s ‘Take Care’ — his second-highest-ranking album on the Billboard 200 this week — celebrates 700 frames on the competitive tally.

If you received a text message about unpaid tolls, there’s a good chance it’s a scam.
The Federal Trade Commission (FTC) warns that fraudsters use a phishing scam to get people to share financial information, like their bank details, to pay a fake unpaid toll. While it’s understandably stressful to be told you owe money, it’s important not to panic. Instead, look for signs of a scam and proceed with caution.

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How the unpaid-toll text scam works
The unpaid toll text scam starts with a supposed toll agency claiming that the target owes a small balance. A payment link is provided, potentially alongside threats concerning late fees and other consequences for not acting immediately.
It’s a form of smishing, which is basically phishing conducted through text messages. A scammer acts as a legitimate company or agency to steal money from victims. They can even set up their fraudulent companies to closely resemble real ones. These fraudulent websites will eventually ask for sensitive details, such as your credit card number and bank information.
If a scammer obtains this information, they can conduct fraudulent purchases that go well beyond the fake toll bill.

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How to tell whether a toll notice is legitimate
There are red flags you can check for. A sudden text that demands immediate payment is the hallmark of a smishing attempt. A slightly misspelled domain name or email address is another red flag, especially if it comes with a link or a QR code.
Good grammar isn’t enough to make a text legitimate. In fact, it often makes sense to ignore the text entirely. Instead, type the toll agency’s name in a search engine and go to its website. Then, call the number listed on the website and verify if the toll bill you saw in the text is legitimate. The Federal Communications Commission has a guide on how to spot toll road payment scam texts, including a sample text.
This smishing campaign isn’t just limited to fake toll bills. Scammers also use this strategy to impersonate the Department of Motor Vehicles (DMV) and courts with threats ranging from license suspensions and prosecution to traffic hearings and high fees.
What to do after receiving or clicking the text
If you didn’t click, you can simply use the “report junk” feature before deleting the text. Most smartphones let you do this by tapping a button without any additional work. You can also forward the message to 7726 (or SPAM).
People who clicked the link should close the page and not do anything else on the site. Change any passwords entered on the site, especially if you use the same password for other logins. In the event you provided financial information, start by locking or replacing the affected card and disputing unauthorized charges. You should also contact the card issuer or bank immediately.
Consumers who shared sensitive personal information with a scammer should consider a credit freeze to ensure the bad actor cannot take out loans and credit lines under your name. It’s a good idea to monitor your accounts and credit reports to ensure fraudulent activity did not take place. You can visit IdentityTheft.gov for a personalized recovery plan.

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