What Makes K-Shaped Recovery Scary?

The economic impacts of the pandemic are bad. But not for every one.
This pandemic is actually making some people richer. Well, How. And is this a K shaped recovery?
Let's find out.
But before going ahead, hit the subscribe button. And trust me you won't regret that.
First, we will see what a K shaped recovery is.
Well for start K shape recovery is similar to any other shapes like V or U where the Graph of economic growth goes down drastically. But in recovery time this graph divides into two ways like a letter K. One going up and the other going down. This type of recovery was seen in the 2008 financial crises. And now this pandemic we are seeing a similar pattern.
So first, let's talk about the line which is going upwards in the K.
Companies like Facebook, Apple, Amazon, and Google are some of the biggest names on this list. These four companies combined took in $28.6 billion in profits in just one quarter. Also, the Pharma and medical equipment industry saw a major surge due to the pandemic. Apart from this Retailers like Walmart, saw massive growth in their income.
And if you talk about individuals, then giants like Jeff Bezos, Mark Zuckerberg, Elon Musk, and many others added $637 billion to their net worth during this pandemic.
Now did every big company or individual became richer?
The answer is no.
And this question takes us to the line going down in the K.
Industries like fashion, hospitality, tourism, and entertainment saw a major decline. Along with these small and medium scale businesses or startups also saw a huge downturn.
Apart from this the working class individuals, small business owners, and the informal sector workforce were hit badly.
So this takes us to unemployment.
Well in the case of unemployment, the informal sector saw a very bad decline, with maximum job losses. And 60% of the world works in this sector. Yet government help like stimulus packages for unemployed people worked for now. But it has a limit.
Also, the idea of work from home is working for most of the companies, which is a good thing. But due to this, companies realized that most of the office work can be done from anywhere in the world. So, some companies may consider cheaper options like the Philippines or India in the future. And this could lead to job losses in western countries.

To avoid the devastation of the economy.
Governments across the world are putting money in the market by various stimulus packages and low interest rates. This is a good thing. But doing this excessively could cause inflation in the market. So governments should know how and when to recovery money from the economy. Increasing taxes is one of the ways they could use.
So what we can do to save ourselves from this economic downturn. Well, its easy people need to save more money when the economy is prospering. According to a survey, 60 to 70% of Americans do not even have $1000 in their savings. And when the tough time comes, people go bankrupt or lose their house or any other valuable assets. So people around the globe need to have proper knowledge about investments and emergency funds. In the near future, these kinds of problems are likely to happen more. And we must be prepared for that.
As whenever the economy sees a downturn, the difference between rich and poor increases.
And the same thing is happening now. Wealthy individuals or big companies are going up, but small businesses and regular wage earners are seeing a fall.
And this is what makes the K shaped recovery much scary.

#kshapedrecovery #economiccrisis2020

Music Credits:

[businesshub]

This is scary and so true. The world is not in a good place! Thanks for sharing great info. Thanks

[gurdevsingh]

I love your previous video about india. Non biased and accurate. Keep this up and your channel sure to grow.

[HessionDrasha]

Each time there is a crisis like this more property is bought and only offered as rentable on the market. We need a mass boycott of renting from the land owning class.

[gowthamidivya]

Fantastic and detailed information thank you so much for making this video

[sanchitmehta]

30-40% people who save money are either rich or Immegrants 😂

[insaneengineer]

Hello
please share me the link where did you get this voice generator
send me the link
I am one of your subscriber

[dicomohio]

I actually increased my net worth in 2020 but some of my friends are up a creek

[Xaiobi.i]

Which country you belong

I am from India

[s.s.karena]

Great thanks to Paul Helfer, During Friday’s wild sell off, tech stocks have shown the biggest gains since March, and are still appreciating. This caused its longest weekly winning streak since last December up until now.

[Yoshi]

How do Americans not have $1, 000 in these savings? Yall can't save at least 1/4th of your income a month?