Most of the US economy is in a recession
businessinsider.com
March 8, 2026
3 min read
Summary
Jim Paulsen states that most of the US economy is in a recession, supported only by "new era" spending and technology. He compares the economic situation to the disparity between the "Magnificent Seven" tech stocks and the broader stock market.
Key Takeaways
- Jim Paulsen asserts that most of the US economy is in a recession, with growth primarily driven by "new era" technology spending.
- Real private GDP growth in 2025 was 2.3%, but excluding new era investment, only 1% growth occurred with no job creation.
- New era private spending grew 14% in 2025, significantly outpacing traditional private-sector spending growth of 1%.
- The economic divide between the "new era" and "old era" mirrors the performance gap between the Magnificent Seven tech stocks and the rest of the S&P 500.
Community Sentiment
MixedPositives
- The shift of capital towards AI solutions indicates a recalibration of the economy, suggesting potential growth and innovation in the sector.
Concerns
- Concerns about the AI bubble being popped reflect fears that current investments in AI may not be sustainable, which could hinder future advancements.
Source
businessinsider.com
Published
March 8, 2026
Reading Time
3 minutes
Relevance Score
59/100
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