K-Shaped Recovery It Is
In recent months there has been much discussion about how the economy is recovering. V-shaped, U-shaped, L-shaped? A K-shaped recovery has also been brought into play. The idea: The “rich” have quickly recovered from the shock at the beginning of the year. Those without significant assets, on the other hand, are still struggling hard. Basically, it doesn’t matter which letter the recovery resembles. In any case, data on tracktherecovery.org now confirms the suspicions that different income groups are recovering at different speeds.
What is clear is that 16.1 percent of low-income employees (up to $27,000 per year) lost their jobs by the cut-off date of July 29, 2020, compared to January 2020. In contrast, 1.6 percent of those earning more than 60,000 dollars per year were affected.
It is interesting to note that people are spending just under 8.4 percent less than in January 2020, but if you take a closer look at the figures, it is striking: Those on low incomes spend just 3.7 percent less, while those on high incomes spend 12.5 percent less.
The “winners” of the crisis seem to be the grocery stores. As of 29 July 2020, the grocery sector was able to increase by a full 11.9 percent compared to January. The biggest losers are the following areas: Entertainment (-57 percent) and transportation (-51.6 percent).
Frightening: Compared to January, over 22.4 percent of small businesses are closed:
As of July 29, 2020, the revenues of small businesses have fallen by 21.7 percent compared to January 2020.
The tool can be found here.
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