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.
Has the country moved away from this K shape since then? Peter Atwater, the person who originally coined the term “K-shaped recovery,” doesn’t think so. He believes that economic inequality has only worsened since the initial recovery period, with those at the top and the bottom of the income pyramid becoming even more divided.
Atwater 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. He also shares which letter of the alphabet he thinks best represents a healthy economy.
Additionally, the show covers a recent Oklahoma Supreme Court decision regarding a publicly funded religious charter school, as well as how the fragile global shipping supply chains could impact Federal Reserve decisions on interest rates.
Later on, 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.