Economic Affairs

The wealth windfall after Covid-19

Huge increases in wealth inequality during the pandemic call for a global wealth tax

Even though GDP contracted in most countries, the wealthy got even richer.ST PHOTO: ALPHONSUS CHERN

Most discussions of inequality focus on income inequality. But almost everywhere, inequalities in wealth - that is the value of financial and real assets that people own, less their liabilities - are far more pronounced. And they have got worse after the Covid-19 pandemic.

In a normal year, household wealth would grow at around the same rate as gross domestic product (GDP). One of the more stunning economic side-effects of the pandemic has been the fact that even though GDP contracted in most countries (and by 3.5 per cent globally, according to the International Monetary Fund), the wealthy got even richer.

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