Dr. Chhoda explores the K-shaped recovery in the United States economy as:
1 – Apple becomes the first U.S. company to reach $2 trillion in value, capping a staggering ascent that began in the pandemic. It took Apple 42 years to reach $1 trillion in value. It took it just two more years to get to $2 trillion. Even more stunning: All of Apple’s second $1 trillion came in the past 21 weeks, while the global economy shrank faster than ever before in the coronavirus pandemic.
This follows the trends of other big companies like Target, Home Depot and Nike posting record profits.
2 – The K-shaped recovery, with certain states and certain industries hit MUCH HARDER than others.
Many people across the country are still avoiding malls, restaurants and other businesses. The shift in behavior points to a reshaping of American commerce, fueling questions about the strength and speed of the economic recovery as the pandemic continues to spread.
As state and local officials have moved to reopen businesses, people have reacted differently depending on where they live and the industries they choose to do business with.
These significant variations in how people spend money, and which industries are impacted are early indications of a K-shaped recovery. In general, we may be seeing the start of a prolonged, uncertain and uneven recovery.
Shopping behavior has varied widely by the type of business in question, how prevalent the outbreak is nearby and even voting patterns in the region.
Visits to businesses have, for example, rebounded more in Alabama, a largely conservative state, than in the more liberal Vermont. But in comparison with last year, people in Vermont have been shopping again more than people in California, where the pandemic remains a greater threat. Everywhere, trips to pharmacies and hospitals have fallen, while those to gas stations and convenience stores have held steady or even increased.
BOTTOM LINE – The evolution of consumer behavior appears to be state-specific and industry-specific. This will decide who gets their jobs back.