An increasing income and wealth disparity among Americans has been simmering for decades, a widening gap that could have long-term economic implications and threaten the market’s recovery. barrons.com/articles/why-t…
On its face, income and wealth inequality is a natural byproduct of a capitalist system. But when inequality gets exaggerated, it has broad repercussions—and by multiple metrics, wealth inequality has made the U.S. an outlier among developed nations. barrons.com/articles/why-t… 
The U.S. middle class now makes up roughly 50% of the population, putting the nation closer to countries like Russia and Turkey, rather than Japan, France, or Germany, where the middle class makes up more than 60% of the population. barrons.com/articles/why-t…
“Economic history clearly shows that the strongest, most durable periods of economic expansion in most countries occur when the middle class expands,” says Abby Joseph Cohen, senior investment strategist for Goldman Sachs. barrons.com/articles/why-t…
Economic inequality has been building over decades, fueled by structural racism and inequalities in U.S. education, finance, and health-care systems. Also at work: a shift toward prioritizing shareholder value over other stakeholders like employees. barrons.com/articles/why-t…
The shift began in the 1980s, says Northwestern University's Robert Gordon. The emphasis on stockholders above all else meant the last few bull markets disproportionately benefited Americans who owned stocks—the majority of whom are white and wealthier. barrons.com/articles/why-t…
The Covid-19 pandemic exacerbated and highlighted these problems. Some 40% of the people who have lost their jobs were earning less than $40,000, compared with 13% of those earning $100,000 or more. barrons.com/articles/why-t…
Layoffs hit lower-income workers hard; about half have lost their jobs or had their wages cut. Sectors like leisure, transport, and retail are filled with part-time, lower-wage jobs that generally don’t come with paid leave, health care, or 401(k) plans. barrons.com/articles/why-t…
Markets are notoriously myopic, shrugging off civil unrest, geopolitical flare-ups, and even 9/11. But there is a growing consensus that rising income inequality and the wealth gap will play a crucial role in the strength of the economic recovery. barrons.com/articles/why-t…
“It does appear that the markets don’t really care terribly much about these kinds of longer-term, slower-burn issues, but ultimately they create a fragility in the system,” says GMO's James Montier. “You are muting the bottom 90%’s ability to spend." barrons.com/articles/why-t…
And if that happens, economists see a K-shaped recovery: A strong recovery among the haves, who can work from home and are spending on furniture and cars now, and a much more difficult road ahead for those who have lost jobs or income. barrons.com/articles/why-t…
An uneven recovery would be bad news for everyone. Learn what can be done about it in Barron's cover story. barrons.com/articles/why-t…
