7 REMARKS Bloomberg Businessweek August 10, 2020CFIMAGES/ALAMY
A better way would be to shift the tax breaks away from
consumption, which tend to reward the wealthy, and focus
on reductions in labor levies, beefed-up unemployment insur-
ance, or investments in infrastructure and research. But ideas
such as those, Bitetti says, are usually less visible to voters.
“Governments favor the bonuses because they’re easy to mar-
ket,” she says. “You’re putting money in the economy, but
there are more useful ideas that would help the poor more.”
The pandemic, of course, has hit various populations differ-
ently, depending on your race, your sex, and the size of your
bank account. Poor and non-White populations are more likely
to contract the virus, they’re dying at higher rates because of
inequities in living conditions and health care, and their chil-
dren suffer more when schools close, as wealthier families
typically have better internet access and more time to help
with homework.
The most precarious workers—migrant laborers or gig-
economy types such as Uber drivers—are frequently the first
to lose their already meager wages, and many don’t qualify
for unemployment benefits because they don’t hold perma-
nent jobs. In Italy, which shuttered nonessential industries
for months, the restaurant and hotel business, staffed largelyby people at the bottom of the economic ladder, will contract
26% this year, researcher Prometeia predicts.
And the economic impact is harder on women. They most
often bear the brunt of unpaid child-care duties as schools
and summer camps close, and they’re more likely to have
part-time or temporary contracts, which are the first to go in
a downturn. Italy’s fashion industry, where 56% of the workers
are women, is on track to shrink 19%. “Remember how the last
recession was a mancession?” says Luigi Pistaferri, professor
of economics at Stanford University. “This time it’s sectors that
have lots of female employees that are in trouble—hospitality,
services, public relations.”
Governments around the world are seeking to give money
to those most in need, and some is undeniably reaching
them. Many of Italy’s poorest get €500 or more every month
via various programs aimed at offsetting the economic toll
of the outbreak. The $600-per-week boost to U.S. unemploy-
ment checks kept many families afloat before it ran out at
the end of July.
In Japan, everyone is eligible for a 100,000-yen ($950) gov-
ernment grant—yes, billionaires too, but the effect of the
money clearly will be more dramatic for drivers, waiters,