Why You Should Be Very Afraid Of A K-shaped Recovery

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The economic impacts of 2020 have been felt far and wide and we have covered these problems in-depth in a handful of videos on this channel. But the logical question that most people are asking is what comes next?

Disasters happen and they are never pleasant but part of being a nation, a business, or even an individual is being able to deal with adversity and come out the other side.

Because of this people are expecting a recovery of sorts, and it seems like the only point of contention will be what letter of the alphabet this recovery will represent.

Other speculations include a W-shaped recovery where we will see 1 recovery then another decline as the effects of government stimulus and relief packages wear off only to be followed by another genuine recovery later on.

But amongst all of this, there is one type of recovery that we should all be very afraid of, one that is not getting nearly as much airtime and one that is actually being hurt by a lot of current policies and that is a K shaped recovery.

#EconomicRecovery #Recession #WealthInequality

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[shahdkhan]

Countries: Economy can we have a V shaped recovery
Economy: K

[Michelrs]

"O" shaped economy: we keep making the same mistakes again and again and again

[BardedWyrm]

For most of the working class, it's not 'living beyond your means'. It's 'being payed below your needs'.

[thelouster]

Something that’s extremely scary is that in America about 70% of people are living paycheck to paycheck, which leaves them very little to no room to invest in themselves or take advantage of the coming crisis. If inflation sets in from all the QE down the road, there will be a drastic decrease in standards of living at best.

[writerconsidered]

One part you seemed to miss is the lowest wage workers aren't living beyond their means, they have so little means they have no ability to take personal responsibility and save because their wages have always been stagnant. Also in a K shaped recovery the lowest wage earners never get a chance to recover before the next crisis hits.

[swagmanners]

L shape, V Shape, E shape, K shape, are all wrong
The recovery will be shaped

[chancellorpalpatine]

My mom just got of debt from 2008 at the beginning of the year. All the cars we have are from before 2005 and she is fervently against owning real estate. She’s lived frugally and had the luxury of keeping a decent paying job, but still has no money saved or assets. An aversion to spending is not what an economy is supposed to create, especially those in the ‘middle class’.

[anthonyrepetto]

*"O" shaped :* Cycles of collapse into Primitivism.
*"F" shaped :* The Singularity and Immortality creates two high tiers - the Have-Somes and Have-Everythings.
*"S" shaped :* Time travel is invented, and colonists return to the past with superior tech, causing an immediate boost, followed by stagnation in decadence once the endlessness of the universe sets-in.
*"P" shaped :* Time travel is invented, causing an immediate boost as the past is pillaged for high-end collectibles, until the future-future arrives to raid this one of its own collectibles.
*"X" shaped :* An alien civilization collapses, and refugees crash on Earth, causing a flowering of knowledge, here.
*"I" shaped :* Time is an illusion. So is desire. All is One. Be here now.

[johanliebert]

EE starts economy channel in 2019
*stonks*

[majorfallacy]

Sucks when living beyond your means means paying rent for the one tiny apartment you found within an hour of your job

[carolind]

I believe in “live within your means and keep and emergency fund”, but you don’t touch at all on something you actually mention in this episode: wages are STAGNANT. I live in a city with very expensive housing but my job is also here. The suburbs are also very expensive. It is very easy to spend more than 30% of your income on shelter alone. It is not just the individual that needs to change. How did we get to a point where there needs to be two incomes just to keep paying rent on a small apartment? There is something terribly wrong with our system as it is currently set up.

[Boperatrix]

"Living beyond your means has become increasingly easy to do" should be corrected to "Living beyond your means has become increasingly hard to avoid due to stagnating wages and inflation". -_-

[bemusedindian]

70% Americans have less than 1000 USD saved? Have you missed a ‘0’? That is terrifying, if true.

[lewismassie]

Hey fun fact: The wealth inequality in the USA is now higher than the wealth inequality in France before the revolution.

Do with this info as you will

[kaen_tqk]

I solemnly predict that we will have a Æ shaped recovery.

[saugatobose]

The last time I was so early India was supposed to be an economic superpower by 2020 but we are down by 23.6%

[Lunadron]

Having grown up in a multigenerational household, it was an interesting experience. There were very few times where I had to have external childcare, and “external” usually just meant the neighbor watching me.
It truly does carry a stigma though. The street was almost all older people, who while they would never say it verbally, definitely held that judgement silently.
It did also help that my grandparents both had very good retirement plans and good insurance, so it was almost like having 3 above average incomes all of the time. Obviously that wouldn’t always happen for everyone, but even if one of my grandparents didn’t have that strong income, it still would’ve been manageable with the costs saved on childcare, and other monthly expenses.
Obviously it doesn’t work for every family, but if at all possible I highly recommend planning or attempting a multigenerational household. It helps remove the stigma and your family financially benefits from it.

[EroticInferno]

Not a lot of people are going to do save in large part because the wealth and opulence of the super rich is constantly on full display. It’s really hard as social creatures to not be manipulated by the desire to have status...

[ismailnyeyusof]

Living beyond your means is tragic when it means simply a roof over your head.

[livethefuture]

"Live below your means"
Grad Students: Am i a joke to you?