This week last year, the world's stock exchanges were at rock bottom following a steep fall since 20 Feb due to the Covid pandemic. Although it has been affecting our lives now for well over a year, it’s around these times that most large economies began entering severe forms of lockdowns.
And while most people are likely to be quite unhappy about their experiences the past year, the world has seen some big winners too. Additionally, one could argue that all politicians from parties across the political spectrum have now gotten what they wanted the most. So surely, they should all be happy?!
2020 US Stock markets hit the bottom on March 23.
Image source: Stocks Emerge From Covid Crash With Historic 12-Month Run by Felix Richter, Mar 23, 2021
Are our politicians happy yet?
Let's consider it for a moment. The environmentalists have gotten all the planes stationed on the ground, the religious parties have gotten all the pubs closed and most alcohol servings stopped, the conservatives have been able to hand out absurdly large stimulus packages to their favorite industries and donors, the socialists have seen a significant decrease in commercialization and global trade, the «family values» parties have gotten all the families back together in their homes, and of course, the far-right has gotten a full stop on immigration.
Seems to me that everybody has been getting what they've wanted the most for as long as I can remember! So surely, they should all be happy now?
Of course not.
Meanwhile in Norway...
At least our prime minister seems to be enjoying herself. The biggest scandal in Norway the past week was the news that our country’s leader, Erna Solberg, had been celebrating her 60th birthday with 13 guests at a restaurant and later as 14 people in an apartment. The restrictions at the time prohibited social gatherings of more than 10 people privately.
Now I’ll be the first person to say that gathering 14 people, from the same family with no other outside guests to celebrate a 60 year birthday, shouldn’t have been a cause for controversy to begin with. They kept social distancing, they were people who knew each other and they took the «risk» together and freely. However, that obviously doesn’t change the hypocrisy of expecting everyone else in the country to follow the rules while breaking them oneself. Nor does it change that leaders have a responsibility to, well …, lead by example.
The winners takes it all
This brings us back to the original statement: This last year has seen some big winners while most have been losers. A young person in the capital is now expected to pay 16% more on average for an apartment because the low-interest rates, limited supply due to delayed construction work, and increased inflation have caused the prices to skyrocket.
Meanwhile, young people are more likely than others to be out of a job due to the restrictions, will receive less increase to their wages than expected inflation due to businesses and trade unions pulling the "covid makes it difficult" card. The same businesses, however, are delivering on average 50% better results than last year due to a lower cost base and their CEOs and board receiving increased bonuses due to the stock performing so well.
And that's before they'll be needing to pay the bill for the government's current spending through increased future taxes. And without accounting for the fact that the young are sacrificing the most for a virus they're the least likely to die from. This picture is, of course, the same more or less everywhere in the modern world. And while most come out as financial losers, the same old establishment will mostly take it all.
Enjoy!