Economic Divide: Why the K-shaped recovery is just deepening inequality and what it means for the future

In the midst of the economic fallout caused by the COVID-19 pandemic, economists started to describe the recovery of the United States as a K-shaped one. This meant that high-income individuals were bouncing back faster than those with lower incomes.

Since then, Peter Atwater, the person who originally coined the term “K-shaped recovery,” believes that economic inequality has only worsened. He joins the show to discuss why he thinks income inequality has grown, why wage gains for low-income workers don’t tell the whole story, and the dangers of a K-shaped economy. Atwater also shares which letter of the alphabet he thinks best represents a healthy economy.

In addition to this topic, we cover a recent Oklahoma Supreme Court decision regarding a publicly funded religious charter school and how fragile global shipping supply chains could impact Federal Reserve decisions on interest rates. A listener shares their experience of adapting their home to accommodate living with friends, and there is a special shout-out for Susanna’s wedding anniversary.

Listeners are encouraged to send in questions and comments to makemesmart@marketplace.org or leave a voicemail at 508-U-B-SMART.