This share prices have a 15 minute delay and are shown in the local time of the market in which the quote is displayed.
Covid crisis and wealth distribution inequality in the United States
The International Monetary Fund analyses how the increase in net wealth since the beginning of the pandemic has been distributed in the United States, finding that the bulk of the increase in net wealth during the pandemic was to the top 1% richest households, whose net wealth rose by nearly 35%, compared to a modest 5% increase for households in the bottom 50%.
Key points of the analysis:
- Overall increase since the beginning of the pandemic in net wealth although unevenly distributed:
- The increase in net wealth was much larger during the pandemic than during normal times (between the end of 2014 and end of 2019).
- Driven by higher saving, due to lower consumption during lockdowns and social restrictions, and booming equity markets and housing prices.
- Net wealth of the top 1 percent richest households in the United States rose by nearly 35% compared to a modest 5% increase for households in the bottom 50 percent.
- Some explanations to this may be that the equity and housing price boom mostly benefitted the rich, while lockdowns more heavily affected spending on dining and travel, also part of wealthier households’ consumption habits, generating higher savings.
Filter results
According to @McKinsey, banks must prepare for a new growth curve. Strategic precision —the ability to combine technology, capital discipline, and deep customer insight— will distinguish the leaders from the laggards.
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.
According to Ramón Casilda Béjar, Spain, in today’s complex geopolitical landscape, has the opportunity to strengthen its role as a bridge and connecting country between Ibero-America and the European Union, revitalizing investment flows in both directions.
According to @ECB, in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience
According to Juan S. Mora-Sanguinetti, in Spain a 10% increase in regulatory volume leads to a 0.5% drop in employment in companies with fewer than 10 employees.
According to Hélène Rey “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences”.
@judith_arnal proposes reforms for the EU to advance regulatory simplification, starting with consensus on its meaning, with competitiveness as a pillar, plus coordination mechanisms and a governance rethink.
According to @iee_org, Spain has one of the most demanding tax environments for businesses within the European and international context, which may have significant implications for competitiveness, foreign investment attraction, and business expansion.
According to Christine Lagarde for the euro to gain in status, Europe must take decisive steps by completing the single market, reducing regulatory burdens and building a robust capital markets union.
According to the Bank of Spain, in a context of strong growth in transactions and prices, the conditions under which new mortgage loans are granted currently show no signs of easing in lending standards.
McKinsey notes that European private capital is half the size of the U.S. and must play a key role in boosting competitiveness, by driving innovation, scaling firms, and mobilizing the investment needed to close the gap with other regions.