GINI In the Time of Covid-19
The Covid-19 pandemic left millions of Americans jobless, with large numbers of them unable to feed their families or pay their rents. The crisis affected different groups in different ways, with death rates higher among minorities and the poor. It brought to light how pre-existing inequalities made large parts of the population highly vulnerable to unexpected shocks. Inequalities have been increasing in recent decades and it had drastically increased the vulnerability of a large portion of the population. Almost 40 percent of Americans would be unable to meet a $400 dollar emergency expense, and some 27 percent would need to borrow the money or sell something in order to come up with that amount, according to a 2018 report by the Federal Reserve. More recent reports emphasized similarly staggering statistics indicating, for instance, that median wages have not improved over the last 20 years, that the US is undergoing a deep crisis of affordable housing, that student debt has ballooned and will threaten the national financial sector, and that the country has experienced a decline in life expectancy in recent years. In addition, the creation of small-and medium-sized businesses—an important indicator of economic health—remains stagnant, and high household debt continues to significantly constrain families.
Statistics put out by the US Treasury just before the pandemic placed the country’s economy among the top OECD performers in relation to economic growth, stock market value, and falling unemployment. But these numbers translate into economic improvements for only a few Americans at the top of the ladder. For the bulk of the population, revenue has not improved for decades. More than half of all Americans struggle just to keep their purchasing power, with many barely able to meet basic needs. Their daily economic struggles dim hopes that children will someday outperform their parents. Despite some good news before the coronavirus pandemic about better living standards for part of the lower middle class, these economic improvements were not enough to reverse a long-term trend toward skyrocketing inequality and stagnant income for nearly half of the population. In terms of inequality levels measured by the Gini coefficient—the most commonly used measurement of inequality—the US is at about the same level as Kenya and the Ivory Coast. Also, data show that upward social mobility is now significantly greater in Germany and the Netherlands than in the US, shattering the concept of the “American Dream.”
In the US, inequality and vulnerability go hand in hand, as made obvious by Covid-19. Low-income segments of the population are particularly vulnerable to external shocks because of a patchy social safety net. The 2020 coronavirus crisis bluntly exposed these vulnerabilities: potentially infected workers lacked enough paid sick leave to isolate themselves; others were laid off without compensation; and in some cases, school closures threatened the sustainable provision of daily food to many children who depend on school meals for their nutrition. Adding to the massive health crisis was the fact that millions of Americans lacked health insurance, which raised the issue of who would pay for their tests and treatment.
Rising inequality might not be a problem for a nation if poverty was also being reduced and most people felt improvements to their well-being, as is the case of China. But it can constitute a major frustration in countries like the US, where 20% of the population is better off and the vast majority experienced negative or minimal economic progress in recent decades. Many Americans feel a sense of hopelessness that fuels frustration with institutions and increases tensions between social groups. Recent studies have shown that economic grievances and feelings of injustice directly translate to lower trust between social groups defined by differences in race, religion, or ethnicity. Tensions have always existed between poor whites, African Americans, new low-skilled immigrants, affluent elites, and others, but many indicators show that race and class relations in the US have hit a new low.
Tensions have always existed between poor whites, black Americans, new low-skilled immigrants, affluent elites, and others, but many indicators show that race and class relations in the US have hit a new low.
Some Americans have been gradually developing an anti-establishment sentiment; some the nation’s norms, and traditions are being called into question, and collective trust in once-revered institutions such as justice and education has been eroding. There is also strong evidence of a close connection between economic exclusion and increasing social stress, particularly among low-income segments of the population, that translates to record numbers of people suffering from depression, suicide, and collective violence, and/or addicted to drugs, particularly opioids. This social crisis has driven the nation’s fall in life expectancy over the last three years, a development that is exceptional among OECD countries.
However, the Covid-19 epidemic paradoxically offers a beacon of hope. The federal State came out with a massive program of economic and social support, unseen since the New Deal in response to the vulnerabilities of the society. Increasingly, many Americans are wondering if this crisis should not be providing a unique opportunity to address some of the impacts of deep inequalities have on the economy and society.
Production Team
Director
Mathieu Mazza
Producer
Tracy Mazza
Producers
Alexandre Marc
Patricia Vasquez
Co-Authors
Alexandre Marc
Patricia Vasquez
Writers
Mathieu Mazza
Tracy Mazza
Cinematography
Mathieu Mazza
Production Manager
Tracy Mazza
Editor
Elijah Sutton
Motion Graphics
Garth Superville
Ignacio Bello
Jamie Lee Godfrey
Music
J’Nae Morrae, Morrae Music
An NCI Production
for more information please contact Tracy Mazza
Team Bios
Alexandre Marc
Alexandre is a former non-resident senior fellow at Brookings Institution and an advisor in the Institute for Integrated Transitions that address issues of political and social tensions. He was until very recently the Chief Specialist for Fragility, Conflict and Violence at the World Bank. He is the lead author of the UN World Bank Flagship Report: “Pathways for peace, inclusive approaches to preventing violent conflicts”. He has also co-led the preparation of the World Bank first strategy for addressing Fragility, Conflict and Violence. He has extensive experience in the area of economic and social issues having worked on related themes across four continents over the last 32 years. In addition to his World Bank experience, he was Director of the Roma Education Fund from 2006 to 2007 based in Hungary and working on addressing Roma’s exclusion and a visiting fellow, in 2005, at the Centre d'Etude des Relations Internationals (CERI) in Paris, responsible for research on cultural diversity and public policy. He was a contributor to the 2011 World Development Report on Conflict, Security and Development and the lead author of World Bank Study on Societal Dynamics and Fragility, the book: Responding to the challenge of fragility and security in West Africa, and the book: Violence in the city. Alexandre Marc holds a Doctorate in Political Science from the Paris Institute of Political Science (Science Po). Before joining the World Bank in 1988, Alexandre Marc undertook research and consulting on Africa in Oxford University (St Antony’s college) and for The Societe D’Etude Economique et Sociale (Paris).
Mathieu Mazza
As NCI’s primary Director of Photography, Mathieu has travelled to and shot in over 80 countries. He has been involved in many news magazine stories and prime time documentaries for ZDF and ARD. Mathieu has captured interviews for the national network TVOne that range from President Barack Obama and Michelle Obama to entertainers and actors such as Harry Belafonte and Kerry Washington. Other notable interviews have been with President Nelson Mandela, Beyoncé, John Travolta, U2’s Bono, Angelina Jolie, The Rock and many more including Presidents George H.W. Bush and George W. Bush. He's covered natural disasters in Haiti and New Orleans. And was on the ground in 2012 where Superstorm Sandy made landfall on the New York City harbor. He’s covered conflict zones in Bosnia in '94 and Afghanistan in 2001. He filmed the amazing work of the USO on tours in Iraq, Kosovo and Bosnia with celebrities Arnold Schwarzenegger, Wayne Newton, Kid Rock, Brittany Murphy, Robert De Niro and Jessica Simpson.
He is Co-Creator and DoP for the Emmy Award winning series SAYARI, a kids globe trekking show. Mathieu was also the DoP for the documentary CHASING DANCE featuring choreographer Chase Brock and his dance company The Chase Brock Experience that was twice nominated for a New England Emmy. Mathieu co-produced and shot the documentary Fightlady about the world of amateur female boxing which features female boxing promoter Wanda "Fightlady" Countiss and Franchon "The Heavy Hitting Diva" Crews-Dezurn.
For The U.S. Department of Health and Human Services, Mathieu was the DoP and NCI provided crews and equipment for the pieces Molly & Yvonne #GetCovered profile segments.
Mathieu is the DoP for NCI’s short documentary, Forging Art, Nol Putnam Artist Blacksmith currently airing on MPT.
Tracy Mazza
As co-owner and Vice-President of NCI, Tracy coordinates crews and production logistics. As a producer, she is Co-Creator and Executive Producer of the Emmy Award winning series SAYARI. She has also field produced short pieces and coordinated press junkets for ET, The Insider, Rachael Ray and Extra in addition to producing corporate videos for The World Bank Group. She produced the documentaries Fightlady, CHASING DANCE, NDEGE NDOGO Little Bird, and the short film John Wulp 88 featuring Mr. Wulp’s poetry. In March 2018 she was the East Coast production coordinator for the multi-media coverage of the Saudi Trade Delegation to the US.
Tracy is currently producing NCI’s long format documentary, Forging Art, Nol Putnam Artist Blacksmith the short documentary of the same subject is currently airing on MPT.
Patricia Vasquez
Patricia worked as a print journalist for twenty years focusing on social and economic issues related to oil, gas industries, mainly in Latin America. In a more academic role, she later concentrated on conflicts related to oil and gas developments as a Senior Fellow at the prestigious U.S. Institute of Peace, where she published a book called 'Oil Sparks in the Amazon: Local Conflicts, Indigenous Populations, and Natural Resources'. While living in Kenya, she was hired by the World Bank and United Nations to apply her expertise in East Africa. Early on in her career, Patricia lived in Nicaragua for three years, covering issues such as the Contra War for the Spanish BBC Radio. She is a frequent collaborator to the Woodrow Wilson center in Washington DC and a Non Resident senior fellow of the Geneva Graduate Institute.
Patricia was also involved in a few film-making projects. She co-produced the film “El Abrazo”: an in-depth look at the socio-cultural aspects of Tango music and dance. She also directed a couple of student films during film school. Patricia holds a Masters degree from John’s Hopkins University. She is Argentine-American and has lived in Washington, DC for thirty years.