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Will Covid cause huge transfer of wealth out of hands of middle class?

Posted

Specializes in ER. Has 28 years experience.

I foresee a bleak future for the middle and working classes in America. The government relief efforts I've already proven inadequate. Opportunists will swoop down to buy up foreclosed on real estate, and other assets people will be losing in 2020. Even the upper-middle-class will be affected.

I predict increased power in the hands of the already powerful. There are influential billionaires who will continue to increase their wealth.

There may be unrest, as various factions feel the pinch. I don't think we've even seen a small part of what could be possible in the near future.

Our infrastructure is definitely starting to unravel a bit. Here in Washington State, the largest potato producer in the nation, there have been huge free giveaways of potatoes by farmers who cannot get their product to market. This is because the food distribution has been disrupted with this crisis. I had trouble finding potatoes in the store. There are problems in the warehouses that are distributing our food and other necessities. The shortages we are seeing in the stores are not because people are hoarding.

Unless the authorities start releasing the economy, I don't think things are going to be well by the end of the year. The deaths from the coronavirus might pale in comparison.

We're just pawns in their games. Just a massive cash grab, nothing more.

A Hit With The Ladies, BSN, RN

Specializes in Psych. Has 5 years experience.

I've given up on politics altogether. I observe it, and voted in the primaries for Bernie, but will not be participating in November or any future elections. America is a democracy in form, but a plutocracy in function. Everything is meant to legitimize class divisions.

Emergent, RN

Specializes in ER. Has 28 years experience.

2 minutes ago, A Hit With The Ladies said:

I've given up on politics altogether. I observe it, and voted in the primaries for Bernie, but will not be participating in November or any future elections. America is a democracy in form, but a plutocracy in function. Everything is meant to legitimize class divisions.

This isn't really a political post oh, it's a post about the economic impact of covid-19.

One thing I have to say is, the American propensity to be in debt is going to hurt many people. I'm glad I've been on the Dave Ramsey lifestyle for a while.

A Hit With The Ladies, BSN, RN

Specializes in Psych. Has 5 years experience.

I'm really rooting for the states' economies to be opened up already. Here in Texas I expect things to be essentially back to "normal" by mid-May, if not the end of May. There's no point in continuing the shut down at this point. Nurses aren't going to work for free if the economy collapses altogether and we're in Great Depression 2.

Kitiger, RN

Specializes in Private Duty Pediatrics. Has 42 years experience.

55 minutes ago, Emergent said:

One thing I have to say is, the American propensity to be in debt is going to hurt many people. I'm glad I've been on the Dave Ramsey lifestyle for a while.

Same here. Debt-free is liberating.

And for those who have debt, freedom will be harder to achieve for a while.

InTheLongRun

Has 15 years experience.

1 hour ago, A Hit With The Ladies said:

I've given up on politics altogether. I observe it, and voted in the primaries for Bernie, but will not be participating in November or any future elections. America is a democracy in form, but a plutocracy in function. Everything is meant to legitimize class divisions.

Encouraging people not to vote because "they're all the same" is a classic strategy to reduce voter turnout of left leaning voters.

I will be voting even if it means I have to crawl over glass and corvid corpses to do so.

Edited by InTheLongRun

InTheLongRun

Has 15 years experience.

That money was a cash grab for big business, political donors and the connected. Precisely why some people wanted tight oversight of the distributions....

Daisy4RN

Specializes in Travel, Home Health, Med-Surg. Has 20 years experience.

1 hour ago, Yokohama said:

We're just pawns in their games. Just a massive cash grab, nothing more.

Cash and power grab!

Daisy4RN

Specializes in Travel, Home Health, Med-Surg. Has 20 years experience.

Unfortunately I agree with you because that is always the way the cookie crumbles, like it or not. I read a article earlier that was talking about how the billionaires got even more billions just in the last few months Bezos, Zuckerberg, Musk) . The poor will still get the gov assisstance that, yes, the middle class will pay for. The rich protect each other and find tax loopholes all the while keeping us "all the people" fighting over things (everything!) so we are preoccupied. I already see large cracks and you know it is just the beginning. I think with all the protests they will start to reopen, some already are, hopefully all very soon.

A Hit With The Ladies, BSN, RN

Specializes in Psych. Has 5 years experience.

I actually upped my contributions on my 403b and 457 because if the economy tanks I do want to buy equities at rock-bottom prices. By virtue of being an employed nurse in America you already have it better than most of our fellow working adults. You might as well capitalize it on to your advantage. Sure, you might not get up to billionaire plutocrat status, but you'll definitely be higher up in the pecking order when the dust settles. Who knows, maybe you can be a landlord off the dirt-cheap foreclosed homes, too?

Emergent, RN

Specializes in ER. Has 28 years experience.

I am a landlord. I'm giving rent discounts to my tenants. I'm keeping in close touch with them regarding their situations.

We are all interconnected.

InTheLongRun

Has 15 years experience.

52 minutes ago, Daisy4RN said:

Unfortunately I agree with you because that is always the way the cookie crumbles, like it or not. I read a article earlier that was talking about how the billionaires got even more billions just in the last few months Bezos, Zuckerberg, Musk) . The poor will still get the gov assisstance that, yes, the middle class will pay for. The rich protect each other and find tax loopholes all the while keeping us "all the people" fighting over things (everything!) so we are preoccupied. I already see large cracks and you know it is just the beginning. I think with all the protests they will start to reopen, some already are, hopefully all very soon.

I don't think there's even anything left in the tax code for the middle class and working poor to remove. Most likely it will be paid for by their Medicare and SS of people in their 40's and 50's.. Really sad because we are likely going to live to see elderly poverty back up at 70 pct again.

StrwbryblndRN

Specializes in CMSRN. Has 9 years experience.

Same here Emergent. I have wonderful tenants. They are worth it. I would rather go without a month or two of rent then see them move.

Kitiger, RN

Specializes in Private Duty Pediatrics. Has 42 years experience.

18 hours ago, A Hit With The Ladies said:

I actually upped my contributions on my 403b and 457 because if the economy tanks I do want to buy equities at rock-bottom prices. By virtue of being an employed nurse in America you already have it better than most of our fellow working adults. You might as well capitalize it on to your advantage. Sure, you might not get up to billionaire plutocrat status, but you'll definitely be higher up in the pecking order when the dust settles.

Good point on buying low. Just be sure you have a good emergency fund first.

hppygr8ful, ASN, RN, EMT-I

Specializes in Psych, Addictions, SOL (Student of Life). Has 19 years experience.

….............And Congress just proposed a 27% cut in Social Security to help fund the stimulus and of course their pay raise of $4600.00 a month on top of the $174,000 per year. that they already get. We live a thrifty life and have our money where the government can't find it or take it. But I worry for members of the middle class who may never recover from the financial disaster this pandemic has cost. 74% of working Americans currently live paycheck to paycheck. So if there is no paycheck one can foresee the consequences

Hppy

InTheLongRun

Has 15 years experience.

20 hours ago, Daisy4RN said:

Unfortunately I agree with you because that is always the way the cookie crumbles, like it or not. I read a article earlier that was talking about how the billionaires got even more billions just in the last few months Bezos, Zuckerberg, Musk) . The poor will still get the gov assisstance that, yes, the middle class will pay for. The rich protect each other and find tax loopholes all the while keeping us "all the people" fighting over things (everything!) so we are preoccupied. I already see large cracks and you know it is just the beginning. I think with all the protests they will start to reopen, some already are, hopefully all very soon.

If you hadn't noticed Medicaid had been all but gutted even before Corvid 19. Hope you lined up really good long-term care insurance or have a lot of kids and grandkids willing to take care of you when it gets to that.

Edited by InTheLongRun

Daisy4RN

Specializes in Travel, Home Health, Med-Surg. Has 20 years experience.

2 hours ago, Kitiger said:

Good point on buying low. Just be sure you have a good emergency fund first.

and make sure where the money in those funds (403b etc) are going also, you can lose money in those also!

Edited by Daisy4RN