In a K-Shaped Recovery, Governments and Non-Profits Could Be Among Those That Fade
09/04/2020
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A new letter is now being used to describe the formation new economic data is beginning to create. It is the letter “K.”
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Nonfarm payrolls rose by 1.4 million and the unemployment rate fell to 8.4% in August, but the results are not as good as they may seem, especially for governments.
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Non-profits and governments could be among the “have-nots” in the K-shaped recovery.
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A recent study forecast that in a most-pessimistic case, as many as 38% non-profit organizations could close as a result of the pandemic. This compares to normal (non-pandemic) circumstances where as many as 4% could close.
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Budget demands for state and local governments are going to continue to rise in coming months and years.
