The K-Shaped Economy

From job creation to consumer spending, the data points to a widening gap that challenges the durability of U.S. growth.

As defined by Investopedia:

A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes.

The chart below illustrates this pattern in the post–COVID-19 recovery. The reason it’s called K-shaped is that different segments of the economy diverged sharply—one rising while another decl…