The Bifurcated Economy Since COVID

Upper-income thriving while middle and lower classes struggle with falling purchasing power

Feb. 3, 2026 at 4:55am

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The COVID-19 pandemic has created a bifurcated economy, with upper-income individuals thriving while middle-class and lower-income families are falling behind due to declining purchasing power. Experts discuss the widening wage gap versus income gap, the 'K-curve' economy leaving the middle class shrinking, and potential Federal Reserve policies that could provide economic relief for Main Street.

Why it matters

The growing divide between the rich and poor is a pressing concern, as it usually leads to social unrest. Understanding the complexities of the current economic landscape is crucial for policymakers and the public to address these challenges effectively.

The details

The economy has shifted since the COVID-19 pandemic, with only the upper-income bracket seeing their incomes outpace price increases. This is reflected in the recent surge in Disney's stock prices, while the average American's weekly paycheck has lost purchasing power. Experts highlight the difference between wage gap and income gap, noting the 'K-curve' economy where the rich and poor are growing while the middle class is shrinking, which often leads to unrest.

  • In 2019, the economy had both lower-income and middle-income/upper-income individuals doing better.
  • Over the four years of the Biden administration, the average American's weekly paycheck, adjusted for inflation, fell by around 4%.

The players

EJ Antoni

Chief economist at Heritage.

Tony Katz

Host of Tony Katz Today on WIBC 93.1 FM.

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What they’re saying

“This is another example of the kind of bifurcated economy that we've been dealing with ever since COVID. If we roll back the clock to twenty nineteen, you had an economy where both lower income as well as middle income and upper income folks were all doing better.”

— EJ Antoni, Chief economist at Heritage (wibc.com)

“If you look at what the average American's weekly paycheck can actually buy, and you look at what happened to that weekly paycheck again, what it could buy, in other words, adjusted for inflation, over the four years of Joe Biden, it fell about accumulative four percent or so.”

— EJ Antoni, Chief economist at Heritage (wibc.com)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.