Make Me Smart

Are we living in a K-shaped economy?

Jun 26, 2024

Peter Atwater discusses the enduring K-shaped economy post-COVID, highlighting widening inequality. The podcast also covers the impact of income inequality, ongoing debate over public funding for religious charter schools, inflation concerns, and global shipping rates. Additionally, it includes news updates on Evergrande, baby formula shortages, and a heartwarming listener story.

20:05

Creator website

Episode guests

Peter Atwater

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Economic inequality has worsened post-pandemic, deepening the divide between high and low-income individuals.

Global shipping supply chain fragility affects Federal Reserve decisions on interest rates.

Deep dives

K-Shaped Recovery to K-Shaped Economy

The podcast episode delves into the transition from a K-shaped recovery to a K-shaped economy post-COVID-19. It highlights the worsening economic disparity between high-income individuals and those at the lower end of the income scale. The guest expert, Peter Atwater, emphasizes the deepening division between economic classes, leading to increased vulnerability and stress for those at the bottom. The discussion showcases the stark contrast in financial security and abundance experienced by individuals at the top versus the bottom of the economic pyramid.

Intro

2min

Impacts of Income and Wealth Inequality on Individuals

11min

Debate over public funding for religious charter schools in Oklahoma

2min

Debate on Religion in Schools and Analysis of Inflation and Shipping Rates

2min

News Updates, Listener's Rebuilding Journey, and Anniversary Celebrations

3min

In the wake of the COVID-19 recession, many economists were describing the United States’ economic recovery as K-shaped. Basically, high-income Americans bounced back quicker than those at the lower end of the income scale.

So, did we ever ditch that K shape? The person who coined the phrase “K-shaped recovery” back then, says no.

“I think we’ve just gotten worse,” said Peter Atwater, president of Financial Insyghts and adjunct professor at the College of William & Mary. “Those at the top of the economic pyramid and those at the bottom have become even more divided.”

On the show today, Atwater explains why he believes economic inequality has grown since the pandemic recovery, why considerable wage gains for low-wage workers tell only part of the story and the risks of letting a K-shaped economy run wild. Plus, which letter of the alphabet would best represent a healthy economy?

Then, we’ll unpack an Oklahoma Supreme Court decision on a publicly funded religious charter school. And, we’ll get into how the fragility of global shipping supply chains could be playing into Federal Reserve decisions on interest rates.

Later, a listener shares what led them to begin adapting their home to suit living with friends. And, happy wedding anniversary, Susanna!

Here’s everything we talked about today: