In the last three months the world and the global economy have been completely rocked by the Covid-19 pandemic. This crisis has huge implications for wealth inequality. It will likely cause a significant increase in inequality, and, through the channels described on this website, that will cause increases in house prices, and decreases in the spending power of wages.
I have written and had published a few articles explaining how this will work.
Firstly an article for OpenDemocracy explaning clearly how the crisis is making rich people richer, by following cashflow changes through the system:
Secondly a follow-up article for OpenDemocracy explaining what that will do to the economy: higher house and stock prices, an increase in inequality, and a fall in the spending power of wages:
Finally I wrote a very short comment article for the Guardian explaining similar arguments:
Thanks to everyone who read the articles and provided feedback. I think that we are likely to see big increases in inequality over the next few years, which will have a big effect on the economy and people’s lives. Please do share the articles if you think that their message is important.