Economic Disparity: America’s Uneven Road to Recovery

As the COVID-19 pandemic struck, many economists began to describe the United States’ economic recovery as K-shaped. This meant that high-income Americans were able to bounce back quicker than those at the lower end of the income scale. However, according to Peter Atwater, who coined the phrase “K-shaped recovery,” economic inequality in the United States has only worsened since the pandemic recovery began. While some low-wage workers have seen considerable wage gains, this only tells part of the story. Atwater warns of the risks of allowing a K-shaped economy to continue unchecked and discusses which letter of the alphabet would best represent a healthy economy.

The show also delves into an Oklahoma Supreme Court decision regarding a publicly funded religious charter school. Additionally, it explores the fragility of global shipping supply chains and how it may be influencing Federal Reserve decisions on interest rates.

One listener shares their experience of adapting their home to accommodate living with friends, and a happy wedding anniversary is extended to Susanna. The show encourages audience participation through questions and comments sent to [makemesmart@marketplace.org](mailto:makemesmart@marketplace.org) or through voicemails to 508-U-B-SMART.

As America grapples with its economic recovery from COVID-19, economists have been discussing whether it will be V-, U-, or K-shaped. According to Peter Atwater, who coined the term “K-shaped economy,” it is becoming increasingly clear that economic inequality in America will only worsen unless steps are taken to address it.

Atwater argues that while some low-wage workers have seen wage gains since the pandemic hit, this does not tell the full story. He warns that if we allow a K-shaped economy to continue unchecked, we risk creating an even greater divide between those at the top and bottom of our economic pyramid.

To avoid this outcome, Atwater suggests that we need a healthy economy represented by a different letter of the alphabet – perhaps one that starts with “I” for inclusion or “E” for equality.

In addition to discussing economic inequality in America, the show also touches on other topics such as an Oklahoma Supreme Court decision regarding a publicly funded religious charter school and global shipping supply chain disruptions that may be impacting Federal Reserve decisions on interest rates.

One listener shares their experience of adapting their home to accommodate living with friends during these uncertain times, while another listener extends congratulations on Susanna’s wedding anniversary.

The show encourages audience participation through questions and comments sent to [makemesmart@marketplace.org](mailto:makemesmart@marketplace.org) or through voicemails to 508-U-B