Luxury Cruiser Selling Like Flying-Disparity Reflected by Corona August 12 14:30

Cruisers that cost billions of dollars are now on sale. It is the story of the United States, which suffers from the worst economic downturn ever due to the spread of the new coronavirus.

"The new Corona isn't falling on everyone equally. It's more heavily weighed on those who work in low-income service industries."
Fed Chairman of the Federal Reserve Board, Powell, inspired by Corona. A strong alarm is sounded against widening economic disparities. We interviewed what is happening in the United States, which has the highest number of infected people, 5 million in the world. (Washington Bureau reporter Yosuke Yoshitake)

6 billion yen sold

America is approaching the summer travel season. In Rhode Island in the east, there is a luxury resort called Newport surrounded by the sea. It is also known as the birthplace of Perry who came to Japan by black ship.

The first thing that came to my attention when I was interviewed was the cruiser of more than 100 vessels anchored. Mark Elliot, a cruiser dealer here, is in good shape.

Mark Elliott
"It sells like a fly."

Sales were down in March due to the new coronavirus, but sales in June were up 20%.

The selling price range is from 1 billion yen to 6 billion yen. Awesome, but clients include hedge funds, real estate company owners, and big business owners. The reason it sells is that it is a safe place.

Unlike passenger planes and large ships, it has the advantage that it can be used by small groups such as families.

I had a cruiser show me that they sold recently. 7.5 billion yen with 6 bedrooms. It is said that it is equipped with multiple high-performance air purifiers. I asked him to look inside, but he refused to allow others to stay clean.

I also heard that in the US, corona triggered leasing and sales of private jets as well. There was definitely a "other world".

The rich become richer

Elliott
“My business is directly connected to the stock market”

Behind the sale of super high-priced items is the high stock price. The Dow average stock price, which plummeted to the $18,000 mark in March, rose sharply from April. Aside from the worst economic hit in the past (April-June GDP: 32%) and the real economy suffering from re-expansion of infections, it has returned to the $27,000 level, which is 90% of the level before Corona (8 Closing price on the 11th of the month).

Urgent economic measures worth 300 trillion yen and the Fed's large-scale monetary easing measures are the factors. Unusual policies supported unemployed people and SMEs. But more than that, those with more stocks and credit will benefit. I may have created such a world.

That's why Chairman Powell sounds the alarm.

In the billionaire index released by Bloomberg News, eight out of the top ten total assets in the world are Americans. Bezos CEO of Amazon and Zuckerberg CEO of Facebook are among the names.

Of these, 7 people's total assets as of August have increased from the beginning of this year. The total increase is 18 trillion yen. The rich are getting richer.

Unemployment drives the gap

Mr. Cowley Prince
"Suddenly I was notified of my dismissal by email."

Morgan Cowley Prince, 26, who lives in Baltimore, eastern Maryland, was dismissed from his restaurant in mid-March.

Three and a half years after graduating from university. The workplace manager was also entrusted, and it was a place of attachment. After that, the store resumed business just by taking it home, but there was no call for returning to work.

Immediately after the spread of infection in the United States, 39% of people whose annual income was less than $40,000 (4.2 million yen) lost their jobs (FRB survey). The overall unemployment rate is in the 10% range, which means that people with lower incomes are losing jobs.

Of particular concern are the hospitality services such as restaurants, hotels and movie theaters that have been the source of employment for these people. In New York, five months after the declaration of an emergency, food and drinks are still banned in the store and hiring employees is slow.

Cowley Prince covers the cost of living and rent with unemployment insurance, but he still has a student loan repayment. What is surprising is that the amount is as high as 11 million yen. I majored in psychology at a private university.

Mr. Cowley Prince
"I'm worried about the loss of unemployment insurance. I don't think I'll be able to return to normal life in the next few years."

Cannot do remote work

There is another interesting data regarding the "difference between corona". According to a survey by the Pew Research Center in a think tank, 62% of those who were able to continue working in telework after graduating from university were 22% among high school graduates.

This shows that some people with high educational background can avoid infection and continue working, and many workers have to work in places where an unspecified number of people gather, such as factories and retail stores. There is.

Rideshare driver David Herb, who met in Washington, drives the car for 10 hours until early morning almost every day. He says he is 65 years old and has signs of high blood pressure.

Herb, a high school graduate, said, “There is a risk of infection because we carry about 20 passengers in one work.

Herb
"I don't have the option of working in a flat computer like a computer. I don't save or invest, so I need money."

Although he was proud of his work, he realized that while some of the wealthy people avoid luxury in luxury cruisers, some people continue to work in harsh environments.

Where is America going?

The economic disparity in the United States has been a long-standing issue, and it was a point of concern in the presidential election four years ago. White workers fearing the drop out of the middle class helped President Trump win.

In an interview related to this year's presidential election, when I heard a speech by Mr. Sanders of the left side of the Democratic party at a university in the Midwest, a large number of students who were in tune with disparity such as student loan exemption and universal insurance It left an impression on me.

When I asked the unemployed Mr. Cowley Prince who was interviewed this time about which candidate to vote in the election in November, he began to talk that "I am dissatisfied with the current administration", but "both candidates I can't like it".

Will the economic disparity continue to expand with Corona? Or can it be a trigger for correction? The United States, which is refraining from the presidential election, is facing serious challenges.

Washington Branch Reporter
Yosuke Yoshitake
Joined in 2004
After working at Nagoya Bureau and Economic Department, currently affiliated