Economics Explained

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.

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