Former Democratic Party presidential candidate Hillary Clinton wrongly claimed that U.S. billionaires have become $400 billion richer during the pandemic.
In line with a misleading statement from the left and U.S. progressives, Clinton said Wednesday, Aug. 19, “It’s wrong that billionaires got $400 billion richer during the pandemic while millions lost $600 a week in extra unemployment.”
The former first lady’s claim is not her own, but was repeated several times by socialist Sen. Bernie Sanders (I-Vt.) to justify a wealth tax, specifically on “obscene wealth gains billionaires have made during the public health crisis.”
The claim of these Democratic leaders is based on statistics published by Americans for Tax Fairness, a left-leaning think tank.
However, to arrive at the figure of $400 billion, what the institute did was to calculate the change in the valuation of the net wealth of millionaires since the stock market bottomed out on March 18.
And, therefore, since then, the recovery of the stock market—parallel to the reactivation of the economy— has caused the increase in their valuation. They did not profit from the CCP Virus pandemic..
Obviously, that figure does not take into account the value of the wealth of the tycoons before the stock market fell to its lowest value in mid-March.
Indeed, a MarketWatch analysis at the end of May found that the net worth of the wealth of the top 50 billionaires fell by $232 billion between the market’s peak on Feb. 19 and May 23.
So it’s not that the millionaires and owners of leading companies made “obscene wealth” from pandemic crisis—as Clinton said at the Democratic National Convention—but that their assets were revalued again in the face of the stock market rally, which in turn is a reflection of the economic recovery the country is experiencing.
In fact, on Wednesday Aug. 12, President Donald Trump cited a number of indicators that demonstrate the V-shaped recovery of the U.S. economy after the abrupt paralysis it suffered following the spread of the CCP Virus.
Among the data demonstrating the extraordinary recovery is precisely the stock market, which grew by almost 50% since March of this year.
In addition, nine million jobs were added to the real economy and manufacturing is experiencing the highest production boom since October 2018. Similarly, demand for cars grew by 65% in the last three months.