By Ali Wolf | Builder
The tailwinds for the U.S. economy have forecasters giddy with enthusiasm. The combination of taming COVID-19, increased savings, pent-up demand, and the revitalization of the service sector has led some to say we are in a “goldilocks” economy. However, things can still improve from here, as the economy claws back the pandemic-induced losses and significant positive momentum pushes us toward future growth.
The K-Shaped Recovery and the Coronavirus
To step back, as the COVID-19 pandemic upended the world in March 2020, the economy shifted from the lowest unemployment rate in 50 years to the highest level since the Great Depression in just a matter of months. Economists, analysts, and market pundits scrambled to make sense of the pandemic-induced recession and prognosticate on how the recovery might evolve. Ultimately, the economy unfolded in what is known as a K-shaped recovery, one that has winners and losers.