Remove barriers to the labor market’s rebound

Before a global pandemic captured the nation’s attention, the issue of social mobility was front and center. Upon conceding to Joe Biden, Vermont Sen. Bernie Sanders claimed his efforts to reduce income inequality were winning the “ideological debate.”

Biden is taking note, setting up task forces with Sanders to presumably move leftward on policy issues.

Even as the COVID-19 virus pandemic shakes our economic foundations, the issue of social mobility is not going away. In fact, it’s more important than ever to understand how the current crisis will deeply affect both income inequality and social mobility for years to come — and how policymakers can best minimize that damage.

It has been argued that pandemics and wars are the best ways to reduce inequality. Certainly, the current pandemic destroyed much of the wealth held by America’s most affluent citizens, who are more likely to invest in the stock market. Many small business owners, who tend to be in the top 20% of the income distribution, are losing a significant chunk of their incomes because of the mandated closure of “nonessential” businesses. About one-quarter of U.S. small businesses have already shut their doors due to the coronavirus.

Some may celebrate these developments because they do “stick it” to the rich, but in reality, this represents an unprecedented loss of economic value that will have long-lasting negative consequences for people at every level of income — not just millionaires and billionaires.

Continue reading at The Washington Examiner.