COVID-19 and Inequality

Bulletin 137 – Norma Cohen looks at how responses to the pandemic have tended to exacerbate inequality.

Governments worldwide responded decisively to the pandemic, generally trying to cushion economies from economic shock via expansionary fiscal policies. But these approaches may have increased wealth and income inequality. A recent Resolution Foundation report shows that asset-rich households have benefitted disproportionately compared with asset-poor households.

In this bulletin, guest author Norma Cohen summarises the main conclusions of their report, and wonders whether a new (or at least reinvigorated) social contract is necessary to counter this problem while also seeking to get economies ready for a ‘net zero’ world.