Most of the US economy is in a recession
businessinsider.com
March 8, 2026
3 min read
🔥🔥🔥🔥🔥
59/100
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
Positives
- 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.