For years, the technology sector (new era spending) has been growing faster than any other part of the U.S. economy. With new era growth outpacing growth in the rest of the economy by two to four times or more year after year, the impact of new era activities has finally begun overwhelming the much larger but much slower growing traditional economic pursuits causing an economic bifurcation and obfuscation never before experienced. During 2025, a record-setting spread between the growth rates of new era pursuits and the rest of the economy has left overall private sector real GDP growth appearing to be okay at 2.3%, but obscuring the fact that about 90% of private sector real GDP is only growing at 1% while U.S. job creation has flatlined. Technology may be the tail wagging the dog, but the rest is a recession by any other name!
Technology is the tail wagging the dog and the rest is a recession by any other name
US real private GDP rose by 2.3% in 2025. but excluding new era investment, the other 89% of real private spending rose by only 1% with no job creation. The 'larger' old era economy is in a recession.
