We can’t afford a restoration after COVID that helps the wealthy get richer and go away the remainder behind
Have black and Hispanic companies suffered Disproportionately high during the pandemic, and they are far less likely to have received funding from federal economic efforts. Ken Harris, the President of the National Business League, explained "Most black-owned companies lack the capacity, scale, and technical support to survive a pandemic." Regarding the inequality in the use of economic funds, he added that "black companies often have no traditional banking partner", which makes it much more difficult to obtain such funds.
Federal Reserve Chairman Jerome Powell written down "Low-income households experienced by far the greatest decline in employment, while job losses were greater among African Americans, Hispanics and women than among other groups." He urged additional federal spending and warned: "If the downturn is not contained and reversed, it could further widen the gaps in economic wellbeing as the long expansion has made some progress in closing."
The democratically controlled house on this front passed the HEROES Act of May 15. It approved an additional $ 3 trillion, including money, to help state and local governments avoid layoffs. Republican Senate chairman Mitch McConnell took immediate action not to be outdone. Less than five weeks later, he boldly said, "As I said, we're going to look at July to make a decision about whether to bring a rescue package."
The unemployment figures of the past month have shown that while at work location Somewhat improved for white Americans (from absolutely horrible to just a little less), even worse for African Americans. The latest numbers continue to paint a bleak picture, even if they move slightly in the right direction. After all, 1.5 million people applied for unemployment for the first time this Thursday – more than 200,000 more expectations. This corresponds to 13 weeks in a row number was over a million. Please note that before the 1982 pandemic in the depths of the Reagan recession, the highest number of unemployment claims filed for the first time in a week was 695,000.
We can see how weak the labor market is – and how counterproductive Trump's policies have been – if we look at just one company. AT&T last week announced They cut nearly 5,000 jobs – despite saving a whopping $ 42 billion thanks to Trump Rich Man's tax cut in December 2017. This travesty continues to show the bankruptcy of the Republican "trickle-down" economy. According to this bogus theory, government policies should aim to help rich people become richer, as this wealth ultimately affects the rest of us. In reality whatever ends According to a left-wing politician, “the rich who piss on the poor” happen.
Among those who have the opportunity to return to work, the people who are most sick are often the ones who have no choice but to say yes, regardless of their health concerns. Patti Hanks is such a person:
Ms. Hanks, 62, recently had ovarian cancer treatment. With her low immunity, she was nervous about returning to work, a shop where she made financing plans and received cash payments from customers who bought furniture and large appliances.
But she was even more worried that if she didn't return, she could lose her health insurance. Finding a job with health benefits that allowed her to work from home felt like a dream in the midst of an economic downturn.
"I just got over chemo," she said. "Now is not the time for me to lose my insurance."
Economic inequality has been increasing for decades. The pandemic is only escalating this trend, as in a recent report by the Institute for Political Studies. The main results of the report included some real doozies:
Between January 1, 2020 and April 10, 2020, 34 of the country's richest 170 billionaires saw their wealth increase by several tens of millions of dollars. Eight have increased their wealth by over $ 1 billion.
From April 15th Jeff Bezos' fortune had increased by an estimated $ 25 billion since January 1, 2020. This unprecedented increase in wealth is greater than Honduras' gross domestic product ($ 23.9 billion in 2018).
Between March 18 and April 10, 2020, over 22 million people lost their jobs when the unemployment rate rose to 15 percent. In the same three weeks, the billionaires' wealth increased by $ 282 billion, an increase of almost 10 percent.
The billionaires' fortunes recovered rapidly after the 2008 financial crisis. Between 2010 and 2020, the wealth of US billionaires increased by 80.6 percent, more than five times the average wealth increase in US households.
Between 1990 and 2020, the assets of the US billionaires rose by 1,130 percent– an increase that is more than 200 times higher than the growth of US median assets by 5.37 percent.
Measured as a percentage of their assets, American billionaires' tax obligations declined 79 percent between 1980 and 2018.
Also look at how a handful of men at the highest heights have contributed to their Lucre heap since America entered the COVID 19 ban three months ago.
These incredible increases were driven by a historical one rally on the stock exchange. After the market recovered in late February and early March, stocks had almost completely returned to their pre-COVID highs by early June before retreating somewhat.
And if you think the people who panicked and sold when stock prices were low are the guys on the list above rather than the (relatively) poor Schnooks who were scared than their 401 (k) by 40 % fell, then I & # 39; I have a swampland in Florida to sell you. The people who can afford to ignore temporary paper losses are the ones who use big drops to buy more stocks – after all, they're "on sale". Buy low, sell high is the name of the game. However, it is not a game for people, depending on their 401 (k) for retirement.
We have seen repeatedly that central banks like the US Federal Reserve seem to come to the rescue whenever things look most bleak to the average person. Many retail investors either do not know this or cannot afford to take a risk. They panic and sell when they see their retirement plans go up in smoke when the market drops like in March and April. But for connoisseurs – and with enough money to be patient – a stock market crash is just another opportunity to make easy money. And so the gap between 1% and the rest becomes even bigger. That's it event now.
With increasing concern about worsening inequality, attention is shifting to the Federal Reserve and other central banks. Your actions have contributed to the rise in asset prices. Does that mean they are to blame or have to be part of the solution?
"Could we please have the intellectual honesty to just admit that the system as it is today is used to give more money to ultra-rich people?" Rabobank strategist Michael Every recently requested this in a message to customers.
Overall, the stock market is a huge driver of economic inequality in the United States. 2016 it was the richest 10% in possession more than five out of six dollar stocks.
An interesting – or, to put it another way, crappy – development during the pandemic is that despite the massive price increases, from which the richest benefited mostly, they cut spending significantly. Those in the top quarter of households by income recently spent one estimated 36% less than before the corona virus, and these expenses have not recovered much so far. This is a real problem, and not because it means that a Fifth Avenue penthouse owner or a Houston oil baron will not be able to put the Van Gogh they were watching on the wall.
As income inequality has grown in America, so has it has inequality in consumption. That is, when the rich spend money, they drive more economy than they did 50 years ago. And more workers are dependent on them.
In other words, this particular economic shock, which has stopped many personal expenses even for rich people who have never lost their jobs, has been devastating for an economy in which many low-wage workers count on high-income people spending money.
Tell me, it doesn't sound like Marie Antoinette's France or any other society where the many depend on the size of the few to get through. It has been 231 years since the French Revolution broke out, and one would hope that the people who live in today's palaces have learned enough to take the necessary steps to avoid another. I have no hope that the budding bully has learned anything from Trump Tower.
Restoration. It is a versatile word. Finding something you've misplaced or getting over a physical illness or painful loss can mean referring to an economy whose conditions are improving. Each of these definitions applies to the United States at the beginning of summer 2020.
We may never return 100% to the life we had before the pandemic. Over a hundred thousand Americans, disproportionately low-income people, and colored Americans have already lost their lives through COVID-19, and this number will unfortunately continue to grow. There will be no recovery for them and their loved ones will live with this pain for the rest of their lives. Our economy appears to have recovered from an all-time low in late March and April, but that doesn't mean that the economic recovery will boost those who have suffered the most. Economic stimulus payments have been very important, but a one-off payment is not a long-term solution to the economic devastation that the most vulnerable of us face.
So far, it looks like the corona virus will be another event that widens the gap between those at the top of the cluster and the rest of the American people. To a large extent, that's true because of the decisions that The Man Who Lost The Popular Vote and his party made. As Tim Wu written down"The Trump administration orchestrates what a rich man's recovery will be if nothing is done."
Hopefully our country will have a new leadership by January 2021 and we can start implementing measures that help every American and fundamentally eliminate the economic inequality exacerbated by the current government. Each of us can contribute something for efforts to bring people to power who make it possible.
Ian Reifowitz is the author of The Tribalization of Politics: How Rush Limbaugh's race-baiting rhetoric about the Obama presidency paved the way for Trump (preface by Markos Moulitsas)