This is not a typical recession says Ron Cadman of Investar USA.

 

This is not a typical recession says Ron Cadman of Investar USA.

This is not a typical recession says Ron Cadman of Investar USA. People have lost jobs due to a government induced recession and Congress decided to break until September with no regard for the mess they created.

Politics is taking priority over collaboration and addressing the real issues impacting America’s working class resulting from Covid-19.

Those of us with hard assets are fine and are seeing asset values rise while the working class have lost jobs and are sliding deeper into debt.

According to a recent analysis by John Friedman, an economics professor at Brown University, U.S. stocks are hovering near a record high, a stunning comeback since March that underscores the new phase the economy has entered: The wealthy have begun to recover. The bottom half remain far from it.

This dichotomy is evident in many facets of the economy, especially in employment. Jobs have returned for the highest wage earners, but fewer than half the jobs lost this spring have returned for those making less than $20 an hour.

One of the most telling indicators about the economy is consumer spending. It’s still down about 8 percent from pre-pandemic levels, however it was down only 2 percent among low-income households in July. This is largely due to the stimulus checks that went to working- and middle-class families.

Now that those funds for struggling families have stopped, many economists predict a rapid rise in evictions, bankruptcies and vehicle repossessions.

Ron Cadman is a Director of Investar USA, an active Build For Rent Development Company in the southwest United States.