
Worries grow over a K-shaped economic recovery that favors the wealthy - rchaudhary
https://www.cnbc.com/2020/09/04/worries-grow-over-a-k-shaped-economic-recovery-that-favors-the-wealthy.html
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hinkley
One of the factors here besides ability to work at home is disposable income
that is not being disposed. Bad for the companies that aren’t getting it, and
leaving some of us with more savings than we normally would have.

I’m trying to sort out better plans for patronizing businesses, donations and
generally investing more locally. Not much else I can do about it.

~~~
ShamelessC
The marginal propensity to consume is significantly lower for the wealthy who
tend to hoard their wealth.

Much of the lower-middle class lives paycheck to paycheck. They have
significantly less disposable income currently because they're likely to be
unemployed. They aren't shopping because they fucking can't afford to, and
because social distancing is important right now - in that order.

So yeah, the pandemic is partially why people aren't spending as much. But
it's also just a core problem that existed pre-pandemic.

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AndrewBissell
Now here's an article that CNBC should have published 11 years ago. The way
that the CARES Act was basically a rerun of 2008's corporate looting, but with
almost none of the same uproar and outrage, is one of the most depressing
developments of 2020.

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Ericson2314
How the hell can a graph be K shaped, however one rotates the K?!

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jeffbee
The idea is that the outcome bifurcates into rich getting richer and everyone
else getting poorer.

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war1025
My job is stable and my portfolio is up for the year. This is a pretty common
situation among most of the STEM people I know.

So does that mean we're all rich?

I mean, objectively we are in most senses of the word.

But that's generally not what people mean when they say "the rich"

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em500
Yeah, what people mean when they say "the rich" is "richer than me".

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effingwewt
Not at all there is definitely a wealth point. There are classes of wealth its
extremely disingenuous to pretend everyone is simply complaining some people
have more than others.

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Ericson2314
You are right, but there is also a sad history of people trying to exclude
themselves with e.g. euphemisms like "upper middle class".

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war1025
It's almost like forcing businesses not to do business causes them to go out
of business..

Shocking.

~~~
quicklime
It's not guaranteed that keeping businesses operating would stop them going
out of business either. It's possible that a better strategy is to force
everyone to shut down and get it over with quickly, so that customers can feel
comfortable going out and spending money again.

~~~
war1025
The economic devastation here in Iowa seems objectively less severe than in
states that locked down more completely.

People shit on Iowa at every turn for our pandemic response, but we've got a
functioning economy and a whopping 3% of our population has tested positive
for the virus so far.

~~~
evgen
When your economy does not have as far to fall before it becomes tragic I
guess the drop doesn't feel too bad. Iowa's pandemic response has been
pathetic and between Covid Kim pushing for opening things up while the state
continues to see increased growth of covid cases and a senator who claims
there have only been 10K covid deaths I think Iowa has absolutely nothing to
feel good about. I keep calling back to parents who are rightfully afraid to
go out with the large number of maskless morons walking around town while
oblivious neices and nephews enjoy house parties in Ames and Iowa City for the
first week of classes.

You are less than two weeks from a peak of covid cases being diagnosed,
schools are being pushed to open, and at this point it is no longer a question
of whether you will see new covid diagnosis peaks by the end of the month but
rather how high it will jump.

There are states that have had good responses to the pandemic, Iowa is not one
of them.

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war1025
> There are states that have had good responses to the pandemic, Iowa is not
> one of them.

I work in Ames and live in the next town over.

As I said before, and as I will repeat any time it comes up, for a place that
is supposedly doing "everything wrong", there is very little impact on daily
life.

As in, literally zero.

You wear a mask to the store. Other than that, life continues mostly as
before.

People are in my opinion making a serious mistake holding Iowa up as the
picture of failure because Coronavirus is literally a non-event in most
people's lives here.

I've been told for months now that we're on the cusp of everything going
wrong.

It's been one big nothing after another.

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sfkdjf9j3j
We're just looking at the data and making comparisons to similar situations
that have played out elsewhere in the country. That it doesn't affect you
right now is irrelevant to the public health concerns. The whole point is to
make sure it doesn't affect you.

~~~
war1025
And all I'm saying is whatever models you are looking at are blatantly wrong.

I've been told every time it comes up since April that Iowa is on the cusp of
being the next New York given how terribly we're handling everything.

It hasn't happened.

It's not going to happen.

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RandoHolmes
You sound like an anti-vaxxer.

Maybe you're right, but you're missing the point.

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supernova87a
Why does CNBC's website always break for me like no other news website. I have
a bunch of ad/flashblockers on -- their site must be filled with junk in a
very badly integrated way.

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sudders
In related news, water is wet.

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mensetmanusman
Many facets here. We need better education.

The wealthy have very good schools.

Democrats protect wealthy schools from undesirables by preventing people from
choosing which school their kids can go to. Unions slow societal progress
(Police and Teacher’s unions for example)

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matchbok
Charter and “school choice” just move problems around. Nothing is solved,
while a few corporate school owners get rich.

Stop acting like you know the field - you clearly have only a basic (and
wrong) view of the situation.

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mensetmanusman
The fallacy is assuming a given school can be fixed in less than 10 years.
There are public schools in Detroit exposing kids to enough lead to cause
measured behavioral changes.

It seems reasonable to hand those families a check to help them to escape than
to keep perpetuating the injustice.

