"From Recession Fears to 'Richcession': What It Means for the US Economy"
As recession fears fade, a phenomenon known as a 'richcession' may be taking place, where the demand for and wages of lower-income groups are outpacing higher-income groups. While some sectors have experienced layoffs, there is still a shortage of workers in the service industry and the overall unemployment rate remains low. However, many Americans are feeling the strain of higher prices and relying on credit cards as their savings are depleted. This economic period may be more accurately described as a K-shaped recovery, where wealthy Americans are not suffering, but credit card debt is at an all-time high and a significant portion of adults are living paycheck to paycheck. The true definition of this economic period will only be determined in hindsight, as the recovery is typically underway by the time a recession is officially declared.
