Excerpted from Post Corona: From Crisis to Opportunity by Scott Galloway, in agreement with Portfolio, an imprint of Pen

The wealthy have done well over the past few decades, in a supernova kind of way. A ton has been written on this because the data is abundant. There is shocking data at the extremes: The top 0.1% now own more of the nation’s wealth than the bottom 80%. The three richest Americans hold more wealth than the bottom 50%. And there is bad news in broad strokes as well: Since 1983, the share of national wealth owned by lower- and middle-income families has declined from 39% of the pie to 21%, while upper-income families have increased their share of national wealth from 60% to 79%.

Letting firms fail and share prices fall to their market level also provides younger generations with the same opportunities we, Gen X and boomers, were given: a chance to buy Amazon at 50 (vs. 100) times earnings and Brooklyn real estate at $300 (vs. $1,500) per square foot. As Thomas Piketty has pointed out, the high growth recoveries that follow economic shocks are periods of real wage growth, whereas slow and steady growth tends to favor the wealthy.

Once people make the jump to lightspeed, advantages like this let them pull away. Access to more resources, investment opportunities, lower taxes, tax specialists, political contacts, friends who can help your kid get into school, and the wheel spins. It’s never been easier to become a billionaire, or harder to become a millionaire.

This trend is only getting worse. Once, we elected leaders who cut the tops of trees to ensure saplings get sunlight. Today there is less and less sunlight. A recent study of historical tax-return data concluded that the uber-wealthy paid a tax rate of 70% in the ’50s, 47% in the ’80s, and 23% at present — a lower tax rate than the middle class. Whereas poor and middle-class tax rates have largely stayed the same.

The obscene $2.2 trillion Covid relief package was just a symptom of our cronyism. The systemic flaw is that our government is no longer keeping capitalism’s winners in check. Instead, it’s a co-conspirator in their entrenchment.

Excerpted from Post Corona: From Crisis to Opportunity by Scott Galloway, in agreement with Portfolio, an imprint of Penguin Publishing Group, a division of Penguin Random House LLC. Copyright © Scott Galloway, 2020.

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ed to be something negative. Earlier today someone made a comment about how they were surprised that my partner and I aren’t engaged yet. Even though I know it’s the next step in our journey together, and it is something my partner and I have openly discussed, it caused me to go into a spiral of self-doubt.

Once the government gets into the business of propping up the losers, you can predict who will be first in line for the handouts: the people with the most political power — corporations and rich people. It’s not just a matter of their lobbyists and their lawyers and their press flacks, though that’s a big leg up. There’s also something more insidious: cronyism.

For purposes of self-preservation, you’d think the rich would be concerned with this level of income inequality. At some point, the bottom half of the globe by income realizes they can double their wealth by taking the wealth of the richest eight families, who have more money than 3.6 billion people. Here in the U.S., the bottom 25% of households (31 million families) have a median net worth of $200. Most recently, a group of protesters built a guillotine outside the Manhattan home of Jeff Bezos to commemorate his wealth passing $200 billion.

Not every dollar will be wasted. Maybe a third of it will go to the needy. But the majority of the money we are asking our children to repay has done nothing but flatten the curve for rich people. Rich people have registered disproportionate benefit, their preexisting relationships with banks getting them to the front of the line. Look no further than the refusal of the administration to reveal who is getting the money — until after the election, of course.

The $2 trillion relief package passed in March 2020 was a theft from future generations. Personal income was 7.3% higher in Q2 versus Q1 of 2020 because of stimulus payments and extra unemployment benefits. The personal savings rate hit a historic 33% in April, the highest by far since the department started tracking in the 1960s. The relief package included a $90 billion tax cut that benefited almost exclusively people making over $1 million per year. The richer you were, the more you gained. At the beginning of August, U.S. billionaires had increased their wealth by a total of $637 billion. It appears, as has been the case for decades, that the only bipartisan action is reckless spending that benefits rich people while throwing some funds at the neediest for optics.

Instead of letting market failures play out, we propped up the shareholder class using money stolen from the next generation. “We’re all in this together,” they tell us. Bullshit. The really ugly truth is this: For the wealthy, the pandemic means less commuting and emissions, more time with family, and more wealth, with markets at all-time highs.

We’ve let ourselves confuse corporations with the things they own and the people they employ. Corporations are simply abstractions. They feed nobody, house nobody, educate nobody. When a corporation fails, those who have risked their capital to support it lose their investment, but the workers are still capable of work, the assets remain available, and whatever need the corporation was filling remains.

My own experience provides a case study in how the wealthy lock in their gains. When I sold my last company, L2, in 2017, I paid an effective tax rate of 17%–18%. I paid 22.8% federal, but the first $10 million were tax-free, thanks to Section 1202 of the tax code. Section 1202 is a tax break for early shareholders, meant to encourage startups. Only it’s nothing but a transfer of wealth from other taxpayers to venture capitalists and founders. No entrepreneur starts, or doesn’t start, a business because of the tax code. It takes a special kind of crazy to start a company and a lot of talent, work, and luck to build it to be something you can sell for millions of dollars. The decision has nothing to do with the tax code. Tax breaks for the successful are just another way we deepen inequality.

The federal government’s response to the pandemic has been true to form. Under the cloud cover of “protecting the most vulnerable,” we’ve handed trillions of dollars to the most powerful.