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The coronavirus pandemic has accelerated the large divide between rich and poor. 2020 was a boom year, at least for the wealthiest. In fact, the world's five richest people saw their collective wealth soar by $269bn. Tech moguls, like Jeff Bezos, Elon Musk, and Bill Gates, cashed in, riding a wave of rocketing asset prices fueled by central bank stimulus and huge demand from housebound consumers dependent on mobile devices.
After an initial shock, shares linked to lockdown essentials, like online communication services and drug research, ended 2020 on a high. The pandemic has hit low skilled and low income workers hard. Their jobs were the first to go in lockdowns, while many roles in professional services actually increased. Globally up to 40 per cent of people on higher incomes were able to work from home, more than double the proportion of the lowest paid. And while they weren't spending on transport and leisure, they saved more. Evidence suggests high earners drove a surge in household savings across many western nations, while those in low incomes were forced to drain their savings to pay the bills.
The elderly have been far more vulnerable to Covid-19's deadly effects on the human body, but is the young bearing the brunt of the economic hit. When virus-induced unemployment peaked in developed countries, the jobless rate among those under 25 years old was more than twice as high as for older workers. Job losses among the young can have chronic long-term consequences. According to one study, those starting out in a recession are typically underpaid, alienated, and more likely to get caught up in crime. The pandemic is making a global inequality crisis worse, with no obvious remedy in sight.
