The Pandemic Will Cleave America in Two
The Crash of 2008 certainly did this. Back then those who had limited assets often had to liquidate what they had to survive. 401Ks disappeared, (what was left of them) houses were sold or foreclosed on, household items found their way to the pawn shop. And these were the middle class folks. The truly poor sunk deeper and relied on the welfare system. Many of the formerly middle class joined them.
But those who were well off enough to hold onto their assets, those who didn’t have to engage in the mass fire sale, ended up doing well. For those with stock portfolios that remained more or less intact, the Fed juiced the system. For the asseted class the decade after the crash would prove profitable.
Two Americas. The asseted and the non asseted.
Now we may see a replay of this.
We will hear much about “inequality” in the months and years ahead but it must be emphasized that it is the central planners in Washington, and specifically The Federal Reserve, that have exacerbated this inequality.
(From The Atlantic)
Two important predictors of an American’s well-being right now, other than whether that person has COVID-19, are the answers they and others in their household would give to two questions: Are you still able to work? And if so, can you work without risking exposure to the virus?