We should also keep in our thoughts those who have lost their lives from COVID, as well as their loved ones. Strong policy support has fueled a vigorous but uneven recovery—one that is, in many respects, historically anomalous.
In a reversal of typical patterns in a downturn, aggregate personal income rose rather than fell, and households massively shifted their spending from services to manufactured goods. Booming demand for goods and the strength and speed of the reopening have led to shortages and bottlenecks, leaving the COVID-constrained supply side unable to keep up.