The Census Bureau’s latest Household Pulse Survey speaks volume to the “K-shaped” recovery, where high-income Americans saw their jobs immediately return and “V-shaped” recoveries for stock and other asset prices, while middle- and lower-class people continue to experience job loss, food insecurity, unable to pay bills, and eviction or foreclosure.
The survey, conducted from Sept. 16-28, shows 59.2 million Americans expect someone in their household to have a loss in employment or take a pay cut ahead of the presidential elections. Bloomberg points out that the working poor, more specifically, minority households continue to struggle the most economically from the coronavirus pandemic.
The survey found 32% of Americans were “somewhat” or “very” concerned about their ability to cover basic household expenses. These figures were alarmingly high for Hispanic and Black households.
Minneapolis Fed President (as well as former Assistant Secretary of the Treasury for Financial Stability under the Bush and Obama administrations, former PIMCO and former Goldman Sachs employee) Neel Kashkari was out this week addressing the dire need for more stimulus to support the economic recovery.
“Whatever Congress can do with the executive branch — come together aggressively to put money in the hands of people who have lost their jobs and to support small businesses so that we don’t have this continuing wave of bankruptcies across the economy — it’s just vital that they move quickly,” Kashkari told CNBC.
On Thursday, House Speaker Nancy Pelosi signaled there wouldn’t be any more financial support for airlines without a much larger stimulus package. Meanwhile, Senate Majority Leader Mitch McConnell said many Republican senators believe the economy has already seen enough stimulus.
With stimulus talks stalled, how is it that poor people and minority households continue to suffer while millionaires and billionaires are getting richer and richer?
Well, it has to do with the flawed economic system, as what the virus exposed for all the world to see, where monetary and fiscal stimulus flows directly to the wealthiest people, thus creating the “K” recovery. The “K” is the result of socialism and central planning – so far its been disastrous for the bottom tier of society.