A recent story by Reuters illustrated the impact of the covid crisis in central Ohio, highlighting one struggling family who is facing eviction and utility shut off as both working parents have jobs directly impacted by the coronavirus; and another family who had the means to cash in on low interest rates and upsize their home. Bidding wars on million dollar homes are not uncommon in the current market and homes are selling in an average of five days. Professionals are thriving as a result of the pandemic policies put in place by the Federal Reserve but low wage workers who went into the crisis with no cash reserves are really struggling. According to the article, the phenomenon is called a K Shaped recovery, in which those on the top are able to climb even further while those on the bottom slide more quickly. Until the virus is contained by a vaccine and/or treatments, job losses in the hospitality sector and others that support lower income families will continue to struggle. An Ohio State professor quoted in the article said there is little hope for a return to normal in the near term. "People's jobs and incomes have disappeared, and they aren't coming back until the threat of dying from the virus dissipates."
https://www.reuters.com/article/us-health-coronavirus-usa-inequality-ins/the-great-divergence-u-s-covid-19-economy-has-delivered-luxury-houses-for-some-evictions-for-others-idUSKBN27G0H7
I feel the same way, until this virus is contained, we will continue to see the unemployment numbers rising. The job market is a tough place to be in nowadays and especially hard for soon to be college graduates. People that are trying to find jobs are going to experience rough times until the economy is back to being as strong as it once was.
ReplyDeleteAgreed, the middle and lower class is being hit the hardest by the unemployment rates. The K Shaped recovery I think is relevant for the time being, but a few years down the line it will revert back to how it was before the pandemic. The recovery will also be very dependent on the election.
ReplyDeleteI think the pandemic amplified the need for the current generation to get degrees and try to get a white-collared job, jobs that were not too affected by the pandemic due to the ability to work from home and the knowledge of low interest rate and taking advantage of that knowledge that most low-income families would not know without traditional schooling.
ReplyDeleteMary made a great point about needing a better college degree. Today, not only a college degree is important, but a masters degree is almost necessary to be "successful" in today's economies. Also, I feel that the K shaped recovery is exacerbating the wage and wealth gaps in the US, which will only cause those who are making decisions for the rest of us are not seeing the perspective of the lower classes.
DeleteI definitely think that the ones are being hit the hardest are the middle and low class and the pandemic is certainly increasing the need for the future generations to get secure and safe jobs
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