The pandemic has been a significant shock in terms of income distribution domestically and internationally. Because of the digital acceleration, those working in knowledge and information roles which can be done remotely were more resilient. In contrast, many workers were in dangerous roles or out of work which correlated to hardship for those at the lower end of the distribution of income. This is not only a macroeconomic setback but also a distinct income inequality setback too.
Even before the pandemic, value in the public markets was increasingly created by intangible assets – assets which are not physical in nature such as digital services. During the pandemic, market valuations on those assets exploded due to the digital acceleration. Intangible assets are created in sectors with few workers and company owners, which accelerates the path of wealth inequality that we were already on.