The richest Americans became 40% richer during the pandemic | Hacker News Reader

The richest Americans became 40% richer during the pandemic

theguardian.com

40 pointsjbegley25 comments

Presumably this is because the government pumped money into the stock market, and rich people hold more stocks. If the government just let the stock market crash, would people be more upset than the current situation where the rich got richer?

It pumped money at all levels of the economy. It turns out the rich tend to benefit in such circumstance. For instance rent subsidies end up in the pockets of landlords who are protected from the decline in the broader economy. People here don’t like it to be pointed out (they downvote any mention) but inflation is here and here it will stay for at least another quarter probably much longer. Don’t take my word for it, read about it yourself. Yellen predicts 4-5% inflation by the end of the year.

They gave business owners a billion dollars in low-interest loans, then immediately forgave them. This was a direct payout too. Even though these funds were supposed to be used for paycheck protection (hence the name, Paycheck Protection Program), it seems that a lot of executives used the funds to finance personal bonuses because when it became clear that they wouldn't even need to use them to pay salaries.

That's pretty different from buying up $700MM in government bonds and mortgage-backed securities, because that's something the government generally does anyway, and doing so merely provides liquidity for institutions who serve as intermediaries of these debts.

Strange how the Paycheck Protection Program didn't directly pay workers who didn't get paychecks, but had to go through their employers instead.

It turns out, businesses contribute to political campaigns. https://www.cbsnews.com/news/planned-parenthood-paycheck-pro...

which would be wild if at the end of the day politicians didn’t still have the last say

That's what the unemployment was for, and it was quite generous. $1200/month on top of the existing unemployment benefits, plus the stimulus checks.

Most low wage workers earned more on unemployment during COVID.

Do you have a reference for "immediately forgave them"? I haven't heard that before.

https://www.sba.gov/funding-programs/loans/covid-19-relief-o...

thanks

And they got the middle-class and poor to cheerlead for policies that they knew would only enrich themselves and provide them the opportunity to strip mine society even more.

How does a rich person getting richer hurt you?

It’s pretty apparent that wealth correlates with power.

If inequality increases and you’re on the lower end you’ll find yourself losing out in society more and more as the wealthy influence it to their tastes and needs

Does it? The most powerful people in Washington arent very rich (relatively).

And the top people on Forbes rich list aren't very well liked in Washington.

Glad to hear it, but here on the poor end of the spectrum my rent is being raised 17%.

maybe buy a home farther from work and commute, renting isn’t your only option

>implying they can afford the down payment

>implying they have a car/can commute on public transport

neither is unfeasible for anyone

When your rent is 70% of your income it's a touch hard to save for a down payment/maintain good credit/pay for schooling to upskill. That's the reality some of us live in.

Imagine actually thinking this is the case...

considering I was able to on min wage as a minority, and know many others who have as well, it’s hard for me to sympathize

Minimum wage where I am is $13.69, and there isn't a property within 50 miles of me for less than $200,000. There's empty plots of land for that much, but nothing with a structure that's livable.

But I take it your retort will be "just move somewhere else."

Just because you managed it where you are, doesn't mean anyone can do it, anywhere.

The share and property markets have been on a tear. It would be hard for people who own things to become poorer over the last 18 months.

Can we raise taxes on the rich yet?

Apparently not

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