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Deadly viruses don’t much care what’s in your wallet, but socioeconomic privilege and access to wealth do wonders when it comes to not just surviving a plague but cashing in on it. Having spent more than a year pre-COVID working on a new nonfiction book about the absurdity of wealth in America during this second Gilded Age, I figured the pandemic would throw a wrench into my story. Yet perhaps unsurprisingly, over the past year, the superrich have remained safely ensconced on their side of an economic chasm that just keeps widening as investment profits flow to the very top while America’s less fortunate struggle just to get by. I put together these stats to demonstrate the degree to which our most privileged citizens have benefitted, often at the expense of the rest of us.
 

 

Who’s on top?

Long before the pandemic hit, America’s economic spoils flowed disproportionately to the top earners, while more than half of the population failed to thrive. 

 

 

The Cares Act, passed in March 2020, included …
to bolster social safety net programs

for reeling state and local governments

in tax breaks for businesses and their (mostly wealthy) owners

How the rich fared during the pandemic

In the first three months of 2020, the combined wealth of Americans with assets of $30 million or more dipped 26%—but then bounced back almost entirely by the end of August. 

The pandemic relief passed in December 2020 included a bipartisan provision that will save America’s wealthiest 1 percent an estimated $120 billion in taxes.

In the pandemic’s first full year, the combined net worth of 657 American billionaires increased by nearly 45%—about $1.3 trillion. 

How the rest fared

During that first pandemic year, 82 million people filed for unemployment benefits, and more than 100,000 businesses* shut down permanently. 

In March 2021, more than 1 in 7 renters said they were behind on rent, as did roughly 1 in 5 renters of color. Meanwhile, 45 million Americans experienced food insecurity in 2020. That’s 10 million more than in 2019. 

 

Noblesse oblige? Non.

Foundations and wealthy philanthropists—notably MacKenzie Scott—opened their wallets wider in 2020 to help the needy weather the pandemic, and also gave in response to the nationwide protests for racial equity. For example, in a Council on Foundations survey of 250 major foundation leaders, 60% said their organizations would distribute more money than initially planned—17% more on average. Which seems pretty generous, until you consider the growth of foundation endowments in 2020, driven by a booming stock market.

 

 

 

 

From March to December 2020 …
Hazard pay given to Walmart workers

Increase in net worth of Walmart heirs Alice, Jim, and Rob Walton

Hazard pay given to Amazon workers

Increase in net worth of founder/CEO Jeff Bezos

Not working

In 2020, the employment rate for people making less than $27,000 tumbled 28%. For those making more than $60,000, it dropped less than 2%. 

Fired up

Average wages grew nearly 7% last year—but mostly because 7.9 million workers earning less than $14 per hour had lost their jobs.

Homework

76% of lower-income workers say their work cannot be done from home. Only 44% of upper-income workers say the same.

Stimulus response

The cares Act lifted more than 18 million people out of poverty in April 2020. But 14 million fell back in after the act’s unemployment benefits dried up.

The average personal income of Americans jumped 10% in January—almost entirely due to the second round of stimulus.
 

 
Sources (not linked above)

WHO DOESN’T LOVE A POSITIVE STORY—OR TWO?

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Like another story about Mother Jones’ real-world impact.

This one, a multiyear investigation, published in 2021, exposed conditions in sugar work camps in the Dominican Republic owned by Central Romana—the conglomerate behind brands like C&H and Domino, whose product ends up in our Hershey bars and other sweets. A year ago, the Biden administration banned sugar imports from Central Romana. And just recently, we learned of a previously undisclosed investigation from the Department of Homeland Security, looking into working conditions at Central Romana. How big of a deal is this?

“This could be the first time a corporation would be held criminally liable for forced labor in their own supply chains,” according to a retired special agent we talked to.

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And it is only because Mother Jones is funded primarily by donations from readers that we can mount ambitious, yearlong—or more—investigations like these two stories that are making waves.

About that: It’s unfathomably hard in the news business right now, and we came up about $28,000 short during our recent fall fundraising campaign. We simply have to make that up soon to avoid falling further behind than can be made up for, or needing to somehow trim $1 million from our budget, like happened last year.

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WHO DOESN’T LOVE A POSITIVE STORY—OR TWO?

“Great journalism really does make a difference in this world: it can even save kids.”

That’s what a civil rights lawyer wrote to Julia Lurie, the day after her major investigation into a psychiatric hospital chain that uses foster children as “cash cows” published, letting her know he was using her findings that same day in a hearing to keep a child out of one of the facilities we investigated.

That’s awesome. As is the fact that Julia, who spent a full year reporting this challenging story, promptly heard from a Senate committee that will use her work in their own investigation of Universal Health Services. There’s no doubt her revelations will continue to have a big impact in the months and years to come.

Like another story about Mother Jones’ real-world impact.

This one, a multiyear investigation, published in 2021, exposed conditions in sugar work camps in the Dominican Republic owned by Central Romana—the conglomerate behind brands like C&H and Domino, whose product ends up in our Hershey bars and other sweets. A year ago, the Biden administration banned sugar imports from Central Romana. And just recently, we learned of a previously undisclosed investigation from the Department of Homeland Security, looking into working conditions at Central Romana. How big of a deal is this?

“This could be the first time a corporation would be held criminally liable for forced labor in their own supply chains,” according to a retired special agent we talked to.

Wow.

And it is only because Mother Jones is funded primarily by donations from readers that we can mount ambitious, yearlong—or more—investigations like these two stories that are making waves.

About that: It’s unfathomably hard in the news business right now, and we came up about $28,000 short during our recent fall fundraising campaign. We simply have to make that up soon to avoid falling further behind than can be made up for, or needing to somehow trim $1 million from our budget, like happened last year.

If you can, please support the reporting you get from Mother Jones—that exists to make a difference, not a profit—with a donation of any amount today. We need more donations than normal to come in from this specific blurb to help close our funding gap before it gets any bigger.

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