During a Sunday appearance on “Fox News Sunday,” Symone Sanders, a senior campaign adviser to Democratic presidential candidate Joe Biden, lamented how recent economic gains were distributed unequally. “It is going well for folks at the top, but for folks who are middle class or below, it’s going down,” Sanders told host Bret Baier. “The question really is, is this [economy] working for working families, and the answer is no.”
The economic pickle Sanders described is sometimes called a “K-shaped” recovery — meaning one in which the wealthy benefit from the recovery while everyone else continues to suffer. Regardless of one’s feelings about the Biden campaign, Sanders’ analysis is echoed by economists — who say that the nascent K-shaped recovery has troubling implications for the future of America’s economy.
“I do think the USA is seeing a K-shaped recovery,” Dr. Gabriel Mathy, a macroeconomist at American University, told Salon by email. “The working class has to continue working, and the government transfers and additional unemployment insurance payments are falling. They must work outside the home, exposing themselves to the virus, and with schools opening they must find childcare. Richer groups have seen their stock portfolios rise and they are working from home, doing okay.” Continue reading.