COVID-19: Millions are out of work, countless Black-owned businesses have closed, and more than 200,000 Americans have died.
But the stock market has completely recovered, despite there being no end to the pandemic in sight! What’s going on?
Even worse? “Billionaires ... benefited from betting on the recovery of global stock markets ... in March and April,” explains the Guardian. America’s billionaires made nearly $1 TRILLION during the pandemic.
While politicians often point to the stock market to show the economy’s health, it rarely reflects the true state of the economy. Why?
The stock market is an indicator of investors’ hopes for the future, not a reflection of its current state.
The disconnect between the stock market and the true economy means those who invest can make money even during a global disaster. But who owns stocks? Unfortunately, not many Black people.
There are plenty of barriers to Black stock investment, which is why only about ⅓ of Black households own stocks, compared to nearly ⅔ of white households.
We’re more often stuck dealing with issues in the real economy – unemployment, business closures, loan discrimination – while wealthy white people can keep increasing their wealth even during a crisis.
The disconnect between the stock market and reality is another way Black Americans are not well-served by America’s financial system. It’s also a way that politicians can claim to be helping the country – when they’re really just helping wealthy whites.