Wealth and Income Inequality: Magnifying Recovery Gaps

Existing and growing wealth and income disparities are critical factors that can be exacerbated by recessions, leading to K-shaped recoveries where the rich get richer through rising asset values while lower-income groups face increasing financial strain and declining purchasing power [2, 5, 26]. These inequalities have deepened over decades, with only upper-income families making lasting wealth gains in recent times [17, 23, 28].

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