By Grace Hwang
Source: TheStreet
Due to the coronavirus, the US entered a steep economic recession in February. But now that some businesses have reopened, it is evident that the economy is recovering. However, the “shape” in which the economy is bouncing back is being debated among economists and politicians. During the first presidential debate, Joe Biden mentioned that the U.S. economy is recovering in a “K-shape”. So what exactly does that mean?
In a K-shaped recovery, the wealthy recover quickly, even possibly doing better than ever before, while the middle and lower income Americans continue to struggle. While 40 million Americans filed for unemployment during the pandemic, billionaires saw their net worths increase by a total of $845 billion in just a few months.
For example, Amazon CEO Jeff Bezos added a striking $55.2 billion to his net worth just since February. The Walton Family, founders of Walmart, saw their total wealth rise by more than $60 billion during the same period. Tesla CEO Elon Musk’s fortune increased by about $70 billion. This happened in a timespan of less than a year, with the help of disproportionately greater financial aid from the government to larger companies, unequal bailouts that allow the rich to have money available to invest and profit once the stock market rebounds, and tax laws and loopholes that make the rich even richer.
All of this occurred while tens of millions of Americans who had minimum-wage jobs were laid off and struggled to put food on their tables, unable to provide for themselves or their families. Unfortunately, many people who have worked these jobs, along with those in the tourism, restaurant, or hospitality industries, will find it difficult to find themselves back at the jobs they once had. There is a long road ahead before everyone recovers again.
