This is an article where I focus on two issues in particular the financial markets are rising from the pandemic but social inequalities are increasing.
Starting with financial markets even if there is not much more to add, central banks have flooded markets with money, creating a recovery in a few months. It’s as if the Covid 19 hadn’t impacted indices, Wall Street made a frightening recovery from the 2008 sub-prime crisis.
Does this choice of the Fed and other central banks really represent the real economy? Absolutely not, how many companies or stores have closed in the world but unfortunately the media only focuses on what they want.
It’s easy to talk about Amazon, Facebook, Google and Apple, they’ve had some fantastic quarterly, companies like Zoom that have a Price/Earnings ratio of 1354 (19/08/2020) just because smart working has grown seems incredible to me. There are other companies that since February/March just because they are working on vaccine against Covid 19 have increased by 100/200% on Wall Street.
Amazing but it’s all true, it seems to me that the financial markets besides having made use of “doping” are like the casino The Palms in Las Vegas, where stock prices do not reflect economic reality.
Financial markets are not a bet as many people think, trading increased during the pandemic to impressive figures and I want to warn the “new traders” to be careful because there is a risk of financial bubble.
I am very concerned about the issue of social inequalities, already in the last 12 years (post Lehman Brothers) there has been a major gap between rich and poor, today the Covid 19 has accelerated this terrible situation.
The rise in unemployment since pandemic has risen exponentially, we must add the fact that many companies are at risk of failure or have already failed, so the number of workers who will lose their jobs will be high.
I would like to point out to those who read me, not to be fooled by the record profits of technology companies and the speculation of investment banks, the real economy is looking metaphorically at another “movie“.
This “movie” dates back to the early 1980s, social inequalities have increased to the detriment of the middle class and the poorest, in a few words coronavirus has accelerated this process. I summarized 5 factors closely related to social inequalities:
- Access to vaccine against Covid 19
- Technological process
I do not elaborate on these 5 points because I think it is easy to get an idea of the differences between one country and another, today wealth is concentrated in the hands of a few people besides the fact that an oligopolistic economy has been created, where few societies are protagonists and condition world governments.
Do you remember when in my first articles I wrote that those who control technology and big data are masters of the world?
Someone may be wondering if it is possible to limit social inequalities, my opinion is no because some societies have enormous power and influences on economies and our lives.
I conclude this article by pointing out that social inequalities have existed for centuries and always will be there, someone like the French Thomas Piketty has been studying this problem for years, Pikkety thinks about a tax on large assets to finance the gap between rich and poor, will it be possible?