The disparity between the rich and the poor has expanded in America during the coronavirus pandemic and government shutdowns, NBC News reported Monday.
“The Federal Reserve slashed interest rates, bought more than $2 trillion in debt and created new lending “facilities,” which flooded the financial system with money and rallied stocks,” NBC News reported. “That has been a boon for investors, but the vast majority of stocks owned in the U.S. belong to the wealthiest 10 percent.”
“Congress and the White House pumped cash into businesses through legislation and the Treasury Department. Few small or minority-owned businesses got any substantial benefits,” NBC News noted. “The administration awarded billions of dollars in no-bid contracts for coronavirus-related goods and services to a relative handful of companies.”
NBC News interviewed Casey B. Mulligan, the former chief economist for President Donald Trump’s White House Council of Economic Advisers.
“They’re buying financial assets,” Mulligan said of the Fed. “If you look at who owns financial assets, disproportionately richer people, way disproportionate, more disproportionate than say the distribution of wages.”
NBC News summarized the outcome.
“Almost everyone got something, but at very different levels. For the vast majority of Americans — even those with the wherewithal to access the various streams available to them — the money simply doesn’t compare to the trillions of dollars in cash and guarantees supporting corporate titans, including Wall Street banks, and their major shareholders,” NBC News explained.
Gary Gensler, an economics professor at MIT’s Sloan School of Management, explained the cumulative impact of government’s choices.
"It's disgusting…I'm out here in a tent by the side of the road trying to make money" – Jeff Esaw when he found out fellow CT resident Peter Brant, art collector and polo club founder, got a PPP loan for his estate.
All the ways the rich got richer—>https://t.co/LIdMZ9nXJJ
— Jonathan Allen (@jonallendc) August 3, 2020