The K-shaped economic recovery, one where the rich grow richer and the working-poor are crushed with job loss and insurmountable debts, was on full display Tuesday afternoon as the Dow Jones Industrial Average crossed 30,000 for the first time.
By mid-afternoon, hours after the DJIA soared to new highs, Bloomberg tweeted a disturbing video of yet, another massive food bank line, something we’ve been highlighting this fall as an increasing occurrence as covid winter continues to crush the working-poor.
Today’s food bank lines were situated in Albuquerque, New Mexico, where hundreds of vehicles were lined up “at a local stadium parking lot,” Bloomberg said. The lines snaked around a parking lot, with an overflow of vehicles pouring out onto the city street.
LOOK: Albuquerque residents lined up in their cars and trucks for a food bank distribution program at a local stadium parking lot ahead of Thanksgiving pic.twitter.com/i5kF4Hva2w
— Bloomberg Quicktake (@Quicktake) November 24, 2020
On Monday, we noted that on Dec. 31, many of the key provisions in the CARES Act are set to expire if there is no action from Congress. This could be catastrophic for 12 million America who will lose access to their Emergency unemployment benefits activated in the aftermath of the covid pandemic, which alone could be a drag of up to 1.5% to growth in 1Q, according to a recent Bank of America report.
Additionally, the expiration of eviction moratorium, mortgage forbearance programs, and suspension of student loan payments could compound the working poor’s financial stresses, many of whom, about 21 million of them, are unemployed and receiving benefits from the government.
In today’s America, massive food bank lines are becoming a common occurrence once more – similar to what was seen in the early days of the pandemic.
Earlier this month, the North Texas Food Bank (NTFB) handed out more than 600,000 pounds of food to 25,000 hungry people – one of the largest-ever food giveaways, explained NTFB officials.
Thousands of cars lined up to collect food in Dallas, Texas, over the weekend, stretching as far as the eye can see. pic.twitter.com/xLFGOcBkPK
— CBS News (@CBSNews) November 16, 2020
While other stimulus packages could be introduced under the Biden administration, America’s working poor has been permanently scarred for years and financially set back a decade.
The K-shaped recovery is getting worse – dropping helicopter money has yet to fix the economy as promised earlier in the year as millions of families are set to go without food this holiday season.
Just a reminder, a rising stock market tide doesn’t lift all boats.