Breaking: The rich are faring well in the COVID-19 pandemic

You may look at your 401(k) or IRA, then the stock market, and assume that the wealthy — who own the lion's share of stock — have taken a huge hit. You would be wrong, according to a new report from the Institute for Policy Studies, a liberal think tank. Between March 18, when Forbes decided to catalog the wealth of the wealthiest, and April 10, "the combined wealth of America's billionaires increased by $282 billion," topping their 2019 levels, the report found.
The gist of Forbes' article on the world's super-rich "was, 'Hey, the pandemic is really affecting even the billionaires; their wealth is down from last year globally and in terms of the U.S.,'" study co-author Chuck Collins tells Fast Company. "What we found was, wait three weeks and they've now surpassed last year's collective wealth and now they're surging to new heights." Meanwhile, more than 26 million Americans have filed unemployment claims in the past 5 weeks and small businesses are teetering on the edge or closing up shop.
Congress expanded unemployment benefits, helping those workers able to successfully file claims with their states, and tried to help out small businesses, but many of the businesses that applied for Paycheck Protection Program loans never even got a call back from their bank before the initial $349 billion dried up. Many "small" businesses with enough money to use the private and commercial arms of major banks got "concierge treatment" from bank employees who guided their PPP applications to the front of the line, The New York Times reports, citing half a dozen bank employees and executives.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"Some of the nation's biggest banks, including JPMorgan Chase, Citibank, and U.S. Bank, prioritized the applications of their wealthiest clients before turning to other loan seekers," the Times reports. "Other business owners were left empty-handed, and many had struggled from the start" with "flaky online portals or backed-up queues." Read more about the two-tiered system at The New York Times.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Jared and Ivanka's Albanian island
Under The Radar The deal to develop Sazan has been met with widespread opposition
-
Storm warning
Feature The U.S. is headed for an intense hurricane season. Will a shrunken FEMA and NOAA be able to respond?
-
U.S. v. Skrmetti: Did the trans rights movement overreach?
Feature The Supreme Court upholds a Tennessee law that bans transgender care for minors, dealing a blow to trans rights
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off