It Is a K Economy
It appears the U.S. economy is recovering nicely for some Americans. In contrast, others struggle in a nightmare of lost jobs, disappeared savings, unable to pay the rent, and facing eviction after December 31st. Some say it is a K economy. Some are going up, and others are going down.
The Washington Post said Monday, “The legal plight facing millions of cash-strapped renters highlights the nature of the nation’s unequal recovery, as Americans who struggled most at the outset of the pandemic continue to face severe hardship — even as the economy begins to improve.”
It Is a K Economy
“About 1 in 3 adults say it is somewhat or very likely that they could face the threat of eviction or foreclosure over the next two months, according to survey data released last week by the U.S. Census Bureau, underscoring how sustained unemployment and dwindling federal aid may be creating the conditions for a housing crisis.
“The National Council of State Housing Agencies in late September estimated that the financial hole is vast and growing fast, with potentially 14 million renter households, totaling approximately 34 million Americans, projected to owe as much as $34 billion by the time the CDC moratorium expires at the end of 2020.”
Billionaires’ Wealth Increases
On the other hand, Forbes said, “America’s billionaires saw their wealth increase by $434 billion during the global pandemic, according to a new report, a staggering figure that coincided with upheaval to the global economy and more than 38 million Americans filing for unemployment.”
Here in Kansas, Stan Longhofer, director of WSU’s Center for Real Estate, said the demand for homes that cost more than $500,000 and a limited supply of them were standouts of the 2021 Kansas Housing Markets Forecast, an annual report released this week. The change comes despite a pandemic and global recession that hasn’t yet negatively impacted home sales but could catch up in the next couple of years, Longhofer said.
Victims Are the Low-Income and Minorities
You see, the victims of this pandemic or the lockdown are employees in the service industry, including those working in restaurants, hotels, aircraft industry, hair salons, and the retail industry. Many of these jobs are gone forever. These people may work hourly wages with little benefits like health care. They may be lower-income and minorities, spending over fifty percent of their income on housing.
In my opinion, the lockdown was a devasting blow to the best economy in the world. It will take years to get back to anything like the economy and employment of 2019.
What Comes Next?
According to Doug Casey, what the US seems to be facing isn’t so much political, or religious, or ethnic as it is cultural, which is much more serious. The country is on the cusp of a full-blown cultural revolution.
Right now, in the US, absolutely anything could happen after the November election, no matter who wins. But with the serious financial, economic, and social problems the US is facing, authoritarians will know how to use them to their advantage. It is time to investigate how to safely get through this coming upheaval and protect your family and your assets.
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