Wealth Gap Widens as Recession Bites Unevenly Across U.S. States
Nearly half of U.S. states are now flirting with recession, yet the pain is far from evenly distributed. The Kobeissi Letter reveals a stark divergence: asset-rich households weather the storm while debt-laden families buckle under stagnant wages and job cuts. Moody Analytics data shows 23 states—representing a third of U.S. GDP—are either in recession or at high risk, with Michigan joining the ranks since September.
Regional fault lines emerge clearly. The industrial Midwest and coastal Northeast bear the brunt, with Washington, Illinois, and Connecticut among the hardest hit. Meanwhile, SUN Belt states like Texas and Florida continue to defy the downturn. California and New York—the twin engines of U.S. growth—now idle in economic neutral, prompting warnings from MarketWatch's Mark Zandi that their stagnation could drag the entire nation into contraction.
