A K-shaped recovery would see things get better for the haves, and worse for the have-nots.
ABC News looks at how America reacted to the rising coronavirus death toll and unprecedented unemployment numbers in April.Economic recoveries come in all sorts of shapes -- V, W and L -- and amid the economic devastation of theOne of the newer and more troubling theories that has gained traction in recent months is the K-shaped recovery, where things get better for the haves, and worse for the have-nots, experts warn.
A sign hangs above the entrance of a shuttered Brooks Brothers store in the financial district, July 8, 2020, in Chicago. “Some of the more extreme divergences, if you look at a company like Tesla whose stock has just exploded higher and all of the FANG [Facebook, Amazon, Netflix, Google] stocks have done extremely well,” he said. “There seems to be a sense that these companies are completely inoculated from whatever the pandemic is bringing forth.”A pedestrian walks by a closed Starbucks Coffee, July 14, 2020, in San Rafael, Calif.
While size and access to cash are big factors for which businesses are able to weather the pandemic, some businesses such as Zoom, Clorox and Amazon also had unique advantages in that demand for their goods or services soared as a result of the outbreak and stay-at-home mandates. “People who worked from home their level of confidence rebounded very quickly and in many ways the sense that I got was that while people were concerned by the outbreak, they were more inconvenienced by it," he added."Life went on very consistently with what they had been experiencing earlier."
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