The pandemic has worsened income equality, with the world’s richest people recovering their losses in nine months, while the number of people living in poverty doubled to more than 500 million, according to a new report by the anti-poverty group Oxfam.
According to the study, the poorest in the world could take a decade to recover their financial position from the devastation caused by the coronavirus pandemic, which says the new coronavirus has accelerated a continuing trend toward increasing income equality. The Oxfam report will be released alongside the Davos Agenda of the World Economic Forum, which takes place online this year rather than the traditional gathering of global movers and shakers in the Swiss ski resort of Davos.
America’s richest people saw their wealth rise by more than $ 1 trillion during the pandemic, thanks to a booming stock market and a K-shaped recovery that benefited the rich, while poorer people struggled with lost wages and jobs and future opportunities . It is a rich versus poor phenomenon that is recurring worldwide. Oxfam describes the impact of the pandemic as ‘the largest increase in inequality since records began’.
Oxfam has called on the Biden government and other governments around the world to address the inequalities caused by the pandemic. In the US, it has been said that a billion-dollar ‘economic recovery plan’ is needed to help the millions of Americans suffering from the economic impact of the pandemic. President Joe Biden has proposed a $ 1.9 billion relief package, although it has not yet been adopted by Congress.
“This is not the time to tamper with the sides. We need big and bold action for a more dignified future where everyone can prosper and not just survive,” said Paul O’Brien, Vice President of Oxfam America. , said in a statement.
Economists in 79 countries surveyed by Oxfam said they predicted their countries would experience an ‘increase’ to a ‘large increase’ in income equality due to the pandemic. The economists interviewed include Jeffrey Sachs of Columbia University, Jayati Ghosh of the University of Massachusetts Amherst and Gabriel Zucman of the University of California at Berkeley.
Higher unemployment for women and people of color
The pandemic especially exposed the inequalities to women and people of color, who had higher unemployment during the pandemic. They are also more likely to work in industries with higher exposure to COVID-19 risks, such as service-based work in healthcare and restaurants. The woman is made up of 7 out of ten employees in the global health and social care workforce, Oxfam noted.
“Women and marginalized racial and ethnic groups are bearing the brunt of this crisis. They are more likely to be pushed into poverty, more likely to starve and more excluded from healthcare,” said Gabriela Bucher, CEO of Oxfam International. , said in the statement.