One of the most economically significant trends of the past few decades has been the emergence of a global middle class. The pandemic, unfortunately, has reversed this trend. According to a recent Pew Research Center estimate, for the first time since the 1990s, the global middle class shrank last year. (Bloomberg)
“About 150 million people—a number equal to the populations of the U.K. and Germany combined—tumbled down the socioeconomic ladder in 2020, with South Asia and sub-Saharan Africa seeing the biggest declines.“
This is, undoubtedly, why Washington worked to provide stimulus and other programs to help many in the middle-class weather the storm. And it worked. Personal income grew 10% in January in the second-largest rise on record, (WSJ)
On the other end of the spectrum, we saw the exact opposite. In fact, the number of newly minted billionaires soared last year Forbes reported on Tuesday. (WaPo)
The number of billionaires on Forbes’ 35th annual ranking swelled by 660 to 2,755 — a roughly 30 percent jump from a year ago — and 493 of them are first-timers. Seven of eight are richer than they were before the pandemic. Forbes calculates net worth by using stock prices and exchange rates from March 5.
I think Johan Goldberg of the Dispatch summed it up best…
It’s almost like a period of massive regulation (caused by the pandemic) on small & medium sized businesses might create favorable circumstances for the largest incumbents with the most resources to adjust at scale. Maybe the lesson is to reduce regulations on small businesses. https://t.co/rBH012B09P
— Jonah Goldberg (@JonahDispatch) April 6, 2021