Tackling Wealth Gap Governments, C.Banks Step Up to Act

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LONDON, May 25 Reuters As authorities around the world look to reshape economies in the face of the COVID19 shock, tackling growing inequality is on the priority list for many.

Here are some of the proposals put forward by governments, central banks and global bodies.

UNITED STATES

President Joe Bidens 4 trillion plan to rebuild the U.S. economy aims to target cash at those taking care of children, the elderly and disabled. In addition, his American Families Plan creates free universal preKindergarten and adds another 200 billion of childcare.

White House economists argue this influx of government cash is essential to fix and grow the U.S. economy. It will get women back into the workforce who left because of COVID19, allow other stayathome caregivers to take jobs, and pay those who do caregiving work as a job a more livable wage.

The Federal Reserve meanwhile has committed to inclusive full employment, citing the drag on economic potential from marginalised groups and income inequality.

CANADA

The Bank of Canada said this month that some of the monetary policy tools it is using to address COVID19 could widen wealth inequality and that it was looking closely at the issue.

EURO ZONE

Policymakers hope a 750 billion euro 918 billion recovery fund will help address inequality by boosting longterm growth potential.

The plan aims to reduce economic disparities and could add as much as 4.1 to gross domestic product under a high impact scenario, SP Global estimates….

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