Covid-19 has also widened the gap between the rich and the poor. Fully 39 percent of former workers living in a household earning $40,000 or less lost work,compared with 13 percent in those making more than $100,000, a Fed official said(Jeanna Smialek , 2020, p3).
A survey by the Federal Reserve showed that many households did not have enough sources. The Fed reported that by the end of 2019, three out of ten adults said that if they were unemployed, they would not be able to save or borrow to pay for three months. The data shows that one in five people who worked in February reported being unemployed or taking vacations in March or early April, and this pain was mainly concentrated in low-income earners. It can be seen that the Covid-19 has made the poor poorer and further widened the gap between the rich and the poor. With the closure of shops and restaurants, consumer spending has plummeted, and mass layoffs have become a feature of daily life.