Breakdown:
- COVID’s $7 Trillion Injection
- Key Insight: During COVID-19, $7 trillion was injected into the economy. However, instead of widespread economic relief, 85% of it was saved or invested rather than spent.
- Impact: This drove housing and stock market prices to unprecedented heights.
- Who Benefited?
- Top 10% Ownership: The wealthiest 10% of Americans, who own 90% of stocks, disproportionately benefited from the stock market surge.
- Wealth Concentration: This amplified existing inequalities, as those with capital saw their wealth multiply, while others struggled.
- Historical Parallels: 2008 vs. 2020
- 2008 Recession: Banks were bailed out, but the broader economy wasn’t, causing a crash that devalued assets.
- Personal Windfall: For those entering peak earning years post-2008, the devalued stock prices of companies like Apple, Netflix, and Amazon became opportunities for massive wealth accumulation.
- Generational Disparities
- Decline in Family Formation: In 1990, 60% of individuals aged 30-34 had at least one child; today, only 27% do.
- Reasons: Financial pressures, including skyrocketing housing and living costs, have made starting families increasingly unattainable for younger generations.
- Intergenerational Theft
- Economic Consequences: The transfer of wealth and opportunity from younger generations to older, wealthier ones represents a significant shift in economic power.
- Struggling Youth: Younger people face challenges finding value in housing, investments, and even lifestyle choices, as costs continue to rise disproportionately to incomes.
- Broader Implications
- Systemic Issues: The economic policies intended to stabilize crises have perpetuated inequalities, favoring those already in possession of assets.
- Societal Impact: A generation’s inability to afford homes, build wealth, or form families contributes to broader demographic and economic stagnation.
Conclusion:
The fallout from economic interventions like the COVID stimulus and past crises underscores a widening generational divide. Addressing these disparities requires systemic reforms to ensure equitable access to opportunities and resources for future generations.