Tornado Alley (PROG)

[blackhawks]

Play on 'k shaped recovery and his failure to grasp 'recovery from......?' Left unsaid in k-boy's narrative is what the GOP president and Congressmen proposed to deal with the recovery from the effects of the pandemic, tax cuts for the wealthy not having trickled down.

Economy
Worries grow over a K-shaped economic recovery that favors the wealthy
Published Fri, Sep 4 20201:41 PM EDTUpdated Sat, Sep 5 20205:35 PM EDT
https://www.cnbc.com/2020/09/04/worries-grow-over-a-k-shaped-economic-recovery-that-favors-the-wealthy.html

“The K-shaped recovery is just a reiteration of what we called the bifurcation of the economy during the Great Financial Crisis. It really is about the growing inequality since the early 1980s across the country and the economy,” said Joseph Brusuelas, chief economist at RSM. “When we talk K, the upper path of the K is clearly financial markets, the lower path is the real economy, and the two are separated.”

“The use of devices, cloud and internet services was bound to skyrocket while the rest of the economy took a nose dive (airlines, energy, shopping malls, offices, hospitality, etc.),” he said. “This has created enormous inequality not just in the performance of economic segments, but in society more broadly. On one side, tech fortunes reached all-time highs, while lower income, blue collar workers and those that cannot work remotely suffered the most.”

Still, worries that uneven growth could accelerate wealth disparities are on the minds of some economists and elected officials, in the latter case becoming particularly acute as the heat turns up on election season.

The subject came up on multiple occasions during a hearing Treasury Secretary Steven Mnuchin had before a House panel on the coronavirus earlier this week.

“Rather than a V-shaped recovery, economists have warned we face an uneven K-shaped recovery, where the wealthy quickly bounceback to pre-pandemic prosperity while lower-income families continue to suffer economic harm,” Rep. James Clyburn (D-S.C.) told Mnuchin.

The Treasury secretary said the administration is sensitive to the issue though he insisted that “we are set for a very strong recovery.”

“I just want to assure you the president and the administration thinks there is more work to be done,” Mnuchin said. “Let’s not get lost on different letters of the alphabet. Let’s move forward on a bipartisan basis on areas we can agree upon. Because there are certainly parts of the economy that need more work.”

https://www.cnbc.com/2020/09/04/worries-grow-over-a-k-shaped-economic-recovery-that-favors-the-wealthy.html