EDITOR NOTE: Some people would think that the pandemic was something of an “equalizer,” that everyone was susceptible to illness, and that everyone shared the same risks and economic pains. But if you look closely at what happened, according to Allianz’ El-Elrian, the Covid pandemic also increased inequality between people and companies. Not only did some people fare much better than others, but the government’s response to the pandemic also introduced a great deal of social and structural instability into the system. Some of it was deliberate, while much of it was unintentional. As to where we stand, nothing is certain, all is in flux, the changes are volatile, and your social and financial well-being is highly vulnerable to shifts in the monetary and fiscal environment. This, of course, spells opportunity, especially as asset bubbles continue to form and the resulting inflation continues to drain the purchasing power out of the American dollar. Physical gold and silver are what you want to hold right now to weather the coming economic storm. Everything else may be consigned to bubbling up and bursting or being drained of its value.
Allianz chief economic advisor Mohamed El-Erian answers some big questions about how the U.S. will get back to work. He calls the pandemic “the great unequalizer” and sees increased inequality in every institution he reviews. El-Erian warns this new distribution of wealth and fortune is much less stable than the normal bell curve and calls on companies to take responsibility for their communities.
Original post from CNBC