US stock market fuels wealth inequality during Covid19 pandemic

Kathmandu: The ongoing Covid19 epidemic has exacerbated the unequal distribution of wealth in the United States of America. According to data released by the Federal Reserve, 10 per cent of Americans have taken control of 89 per cent of the capital market amid stock market fluctuations since the Covid19 epidemic.

According to local media CNBC, the stock market has almost doubled since the fall of March 2020 and has risen nearly 40 percent since January 2020. At the time of the epidemic, a limited number of people have taken advantage of high capital gains by buying shares cheaply in the secondary market.

In addition, the top 1 per cent earned more than USD 6.5 trillion in institutional equity investments and collective investment funds during the Covid19 pandemic. Further more, the lower 90 per cent have added just USD 1.2 trillion in assets.

According to the Federal Reserve, the share price bought by the top 10 per cent has risen by 43 percent between January 2020 and June 2021. But among the lower 90 percent, the increase is only 33 per cent.


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