Since that day, about 43 million Americans have applied for primary unemployment benefits. Low-income workers, especially in travel and service-sector jobs, have been particularly hard hit by the health crisis.
These numbers make an astonishing statement about the deep divisions between Haves and the notes that help fuel unrest across the United States. Experts say resource inequality could be exacerbated by the crisis.
The acceleration of wealth for wealthy Americans is being driven by the extraordinary recovery of the stock market, which has skyrocketed in large part due to the unprecedented move by the Federal Reserve.
Christine Hooper, chief global market strategist at Invesco, said:
Big tech is getting richer
Despite the turmoil on the streets of U.S. cities and the fact that a record 43 million Americans have filed for unemployment benefits, the Nasdaq is trying to hit record highs – an amazing feat that illustrates how Wall Street has made a comeback.
The Fed’s emergency response was designed to create risky assets that would make the stock look more attractive, including a promise to cut interest rates to zero and buy an unlimited amount of bonds. Investors are forced to gamble on equities – and Big Tech in particular is benefiting.
The big tech companies don’t just survive epidemics – many of them prosper. The crisis has made Amazon, for example, even more desirable. Shares of Amazon have risen 47% since mid-March.
Facebook (Full board)
Quick record high recovery. Mark Zuckerberg, co-founder and CEO of the company, has a net worth of worth 30.1 billion, according to the IPS report.
The report calculates billionaire assets using data provided by the Forbes Global Billionaires List, a real-time assessment of total assets. March 18th is used as the starting date because it is tied to that date 2020 Forbes Global Billionaire Survey
. There are some similarities between the United States and the federal government when they began imposing health restrictions.
Other technical players have also acquired more assets in the last three months. Its net worth Tesla (TSLA)
Boss Elon Musk, Google founders Sergey Brin and Larry Page and ex Microsoft (MSFT)
According to the report, CEO Steve Ballmer has raised a total of ১৩ 13 billion or more since March 16.
Unemployment could soon fall by about 20%
Meanwhile, the United States is facing massive unemployment due to the need for social distance to deal with the epidemic.
Economists expect Friday’s job report to show that the United States lost another 7 million jobs in May, tripling the rate at the time of the epidemic – the unemployment rate is expected to reach nearly 20%, higher than the Great Depression.
Chuck Collins, co-author of the IPI report, said in a statement: “The enormous wealth that has been looted from the misery and misery of billions of people undermines the social cohesion we need to recover together in the years ahead.”
Of course, millions of the average American stock market are benefiting from a V-shaped recovery. The rebound has withdrawn the value of investment portfolios, pension funds and retirement accounts. Even betting on just one vanilla fund that could track investors in the S&P 500 could tidy up about 40% since the March 23 low.
According to the Federal Reserve’s 2011 statistics, about 52% of households have plans to retire, directly or indirectly through 401 (k).
Yet a broad stock market helps the rich more than the rich in the country. This is because the top 10% of households 4% owned of all shares in 201
, According to NYU Professor Edward Wolf.
These trends help explain the instability that has gripped the United States. Although the initial catalyst was police brutality, protests and riots were taking place in a country divided along ethnic and economic lines. And these fault lines seem to be growing during the epidemic.
“You’ve got a combustible combination of lost income and inequality,” said Joe Brucelus, chief economist at RSM International.