Shutdown Ends - K-Shaped Economy Ahead?

Big news last week. A lot happened! The longest government shutdown in U.S. history ended after 43 days, Minnesota property taxes are going up, and Mayor-Elect Her shared her priorities for the year ahead.
 
Government shutdown: what it means.  Since 1977, the U.S. government has missed funding deadlines 20 times, with shutdowns lasting an average of 8 days. Read more here. This one, at 43 days, had a huge economic impact:

• About ½ of GDP growth from the past 6 months wiped out
• 42 million people lost access to SNAP benefits
• 670K federal workers were furloughed

 
Economic analysts are predicting ripple effects for the months ahead.  
 
Key economic trends leading into 2026.

1. K-Shaped Economy. Spending is splitting: future economic strength is increasingly reliant on the spending habits and confidence of high-income households while spending slows for the balance of consumers. People are expressing a sense of “falling behind.”
2. Tariffs Hit Hard. And will continue to weigh on consumers and slow small business growth.
3. Job Market Anxiety. The “Great Freeze” and “job hugging” are here – especially among younger workers.​

 
Next Week: We’ll dive more into Minnesota, and Ramsey County specifically, on property tax challenges ahead.
 
See you in the trenches,
B

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End the year with these exciting events: