While some economists believe the Trump tax cut led to a significant economic boom, and for the first time in years, rising wages for lower income people, most Democrats and other economists continue to push the notion that the tax cuts added to income inequality. Biden is said to be keenly interested in ending the carried interest deduction and other tax breaks that benefit real estate moguls, and Wall Street executives such as capital gains taxes. They come as internal and external polls show Biden’s lead widening in the 2020 presidential election over Trump, particularly after the raucous presidential debate last Monday and following Trump's recent COVID-19 diagnosis. The growing divide could also have damaging implications for President Donald Trump's reelection bid. “There are so obviously complete communities that have been almost entirely unscathed by Covid, while others are entirely devastated.”. This material may not be published, broadcast, rewritten, or redistributed. Permanently,’ says letter signed by 80 ultra-rich. The path toward economic recovery in the U.S. has become sharply divided, with wealthier Americans earning and saving at record levels while the poorest struggle to pay their bills and put food on the table. The expected drop in spending, paired with the expiration of economic relief initiatives like the Paycheck Protection Program, could also spell trouble for businesses in the coming months. The World Social Report 2020, published by the UN Department of Economic and Social Affairs (DESA), shows that income inequality has increased in most developed countries, and some middle-income countries - including China, which has the world’s fastest growing economy.. "No one thought they'd lose their job for good or see small businesses shut down en masse. The burden is falling heavily on the poorest Americans, who are more likely to be out of work and less likely to have savings to lean on to weather the crisis. More from News. That is huge". The White House has worked to highlight a rapid economic recovery as a primary reason to reelect the president, but his support on the issue is slipping: Nearly 3 in 5 people say the economy is on the wrong track, a recent Reuters/Ipsos poll found. Economy ‘A tale of 2 recessions’: As rich Americans get richer, the bottom half struggles. . Without further stimulus, the situation appears poised to get worse. Many economists expect a wave of bankruptcies and business closures in the fall, contributing to further layoffs. These Wall Street executives, who spoke to Fox Business on the condition of anonymity, said Biden's advisers in these meetings provided donors with significant insight into the former vice president's agenda if he's elected. Infectious diseases, fiscal crises, cyberattacks, social instability are the next greatest worries for business leaders. Market data provided by Factset. 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All rights reserved. “This is a case where the averages tell a different story than the underlying data itself,” said Peter Atwater, an adjunct economics professor at William & Mary. Economic growth until now had been led by increasing levels of consumer spending, buoyed by stimulus checks and enhanced unemployment benefits that gave many people, including jobless workers, more money to spend. In meetings with Wall Street donors, these sources have pointed to Biden’s lead in critical battleground states including Pennsylvania and Wisconsin as well as a strong showing in states that have trended Republican in the past such as Arizona and Georgia. Some economists have begun to refer to the recovery as "K-shaped," because while some households and communities have mostly recovered, others are continuing to struggle — or even seeing their situation deteriorate further. Tue 25 Feb 2020 11.38 EST Last modified on Tue 25 Feb 2020 11.42 EST. But economists say that argument fails to see the larger picture, one where roughly a million laid-off workers are filing for unemployment benefits each week, millions more have seen their pay and hours cut, and permanent job losses are rising. And that dichotomy, economists fear, could obscure the need for an additional economic stimulus that most say is sorely needed. Can widening income inequality ever be bridged? The challenges are underscored by UN chief António Guterres in the foreword, in which he states that the … The First 2020 Presidential Debate Needs to Address Wealth and Income Inequality Workers prepare for the first presidential debate between President Donald Trump and Democratic presidential nominee Joe Biden at Case Western Reserve University on September 27, 2020… Recent economic data and surveys have laid bare the growing divide. It is a major part of how we understand socioeconomic statuses, being how we … “There could be a whole iceberg underneath it that you’re going to plow into.”. . Highly touted gains in the stock market, meanwhile, help only the wealthiest 10 percent or so of households, as most others own little or no stock. Quotes displayed in real-time or delayed by at least 15 minutes. “But the problem in American politics is always the October surprise.”. A new report by Swiss bank UBS says world’s richest elite have done ‘extremely well’ during the crisis. The trend is on track to exacerbate dramatic wealth and income gaps in the U.S., where divides are already wider than any other nation in the G-7, a group of major developed countries. Income inequality in the United States narrowed in the first three years of the Trump administration as rising wages and a low unemployment rate fueled gains for lower-income and less educated families, according to U.S. Federal Reserve data released on Monday. Mutual Fund and ETF data provided by Refinitiv Lipper. Joe Biden’s advisers are telling their Wall Street supporters that barring an “October Surprise” the former Vice President will handily beat President Trump in the 2020 election and  -- once elected -- immediately propose significant tax increases on the wealthy as well as major corporations because he believes income inequality is a "moral issue," FOX Business has learned. On the same day in late August that MGM Resorts announced it would be laying off a quarter of its workforce, throwing some 18,000 workers into unemployment, its stock price jumped more than 6 percent, reaching its highest closing price since the start of March. At the same time, however, half said they are nearly back to where they were before, and approximately 1 in 7 owners say they are doing better now than they were before the pandemic, the survey showed. The advisers also disclosed some of the names being floated for cabinet positions in a Biden administration, including former Hewlett Packard chief executive Meg Whitman, who unsuccessfully ran for California governor as a Republican in 2010, hedge fund manager Tom Steyer, who mounted an unsuccessful bid for the Democratic nomination on an environmental platform, and former National Security Advisor under the Obama administration, Susan Rice. A historic House vote on marijuana legalization will take place later this month. Sources tell FOX Business’ Charlie Gasparino that billionaire Tom Steyer is being floated as energy secretary and Quibi CEO Meg Whitman is being floated as commerce secretary. How do balance transfers affect your credit score. Talks between the White House and Democratic leaders, meanwhile, have been stalled for weeks. The comments were made by Biden advisers in recent days to various financial executives who have raised money for the campaign. "Biden is serious about higher business and capital gains taxes," said one Wall Street supporter who is in contact with the Biden campaign. All countries face ‘the long ascent’ and risk leaving an entire generation behind, IMF’s Georgieva says. “The haves and the have-nots, there’s always been a distinction,” Sahm said. A 1031 exchange is a tax benefit that allows real estate investors the deferment of capital gains taxes. "And ending real estate tax breaks, like 1031 exchanges. Notably, Biden has implemented the “Rooney Rule,” a National Football League policy that states women and minorities must be interviewed for certain positions. A new report by Swiss bank UBS says world’s richest elite have done ‘extremely well’ during the crisis. The issue of the coronavirus they believe will sway independents and swing voters to side with Biden as well as many Republicans. But that kind of recovery requires leadership — leadership we didn't have, and still don't have.". “If you just look at the top of the K, it’s a V — but you can’t just look at what’s above water,” said Claudia Sahm, director of macroeconomic policy at the Washington Center for Equitable Growth. The advisers have said that Biden is “2,000% committed” to raising taxes on the rich, namely people that make more than $400,000 a year and corporations that received tax cuts under Trump because Biden believes a more equitable tax code is a “moral issue.”. Some names being floated include Meg Whitman, the current CEO of Quibi, a short video streaming platform, for Commerce Secretary, Federal Reserve Governor Lael Brainard for Treasury Secretary, billionaire and former presidential candidate Tom Steyer as a possible Energy Secretary, and former United Nations ambassador Susan Rice as Secretary of State. In many countries, income inequality has increased as poverty also increases. To help people live better and longer, we need to reduce income inequality and improve people’s educational opportunities. Legal Statement. While recessions are always hardest on the poor, the coronavirus downturn has amplified those effects because shutdowns and widespread closures have wiped out low-wage jobs in industries like leisure and hospitality. ©2020 FOX News Network, LLC. Democrats are now seizing on what they see as an opportunity to hit the president on what had been one of his strongest reelection arguments. The gap between the richest and the poorest has never been wider. Inequality as a Voter Concern in 2020 by Frank Newport Economic inequality has been a front-and-center emphasis for the Democratic presidential candidates this year, but there is little evidence that it has become an increasingly important priority for the average American.