Who are the 'victims' and 'beneficiaries' in a crisis?

Okay, this is a very interesting and realistic question. In every crisis, the distribution of wealth and risk is extremely uneven. I'll try to explain in simple terms who the 'victims' are and who the 'beneficiaries' are.

Who are the 'Victims' and 'Beneficiaries' in a Crisis?

Imagine a massive economic storm suddenly hitting.

I. Who are the 'Victims'? (Those who 'pay the price')

These people are like those sailing a small wooden boat, the first to be capsized by the waves.

Ordinary Wage Earners and the Middle Class: This is the largest group. When a crisis hits, companies close, and layoffs and pay cuts are immediate. Many might lose their jobs overnight, with mortgage, car loan, and children's tuition pressures skyrocketing. Even if they don't lose their jobs, stagnant wages and soaring prices (inflation) mean their money is worth less and less, and their quality of life declines sharply.
Households and Individuals with Little Savings: The phrase 'hand to mouth' describes them. They have no buffer against risk. Once they lose their source of income, they might not even be able to pay next month's rent, and even basic sustenance becomes an issue. They are the most vulnerable and helpless group during a crisis.
Small Business Owners: Don't let the 'boss' title fool you; their small companies have very fragile cash flows. As soon as banks tighten lending or customers reduce orders, their businesses immediately become unsustainable. Many small business owners not only face bankruptcy but might also lose years of savings or even their homes.
Retirees Relying on Fixed Pensions: Crises are often accompanied by inflation. Retirees' pensions are fixed, but goods become increasingly expensive, quietly 'stealing' their purchasing power, making their later years very difficult.
Recent Graduates: They are the unluckiest 'entrants.' They graduate into the worst job market, finding it hard to secure good jobs, with low starting salaries and limited development opportunities. This poor start can potentially affect their entire career trajectory.

II. Who are the 'Beneficiaries'? (The 'Opportunists')

These people are either sailing aircraft carriers, largely unaffected by the storm, or operating submarines, waiting for the storm to pass to reap benefits.

Investors with Large Amounts of Cash: 'Be fearful when others are greedy, and greedy when others are fearful' is their motto. During a crisis, prices of various assets like stocks and real estate plummet, becoming very cheap. At this time, those with ample cash can enter the market to 'buy the dip,' acquiring quality assets at bargain prices. When the crisis passes and the economy recovers, these asset prices rebound, allowing them to earn astonishing returns.
Giants in Certain Industries: The impact of a crisis varies across industries. For example, during the pandemic crisis, companies involved in online conferencing, e-commerce, and medical protective equipment might experience explosive growth. More importantly, industry giants can seize the opportunity to acquire struggling competitors at low prices, further expanding their market share and forming monopolies.
Speculators Skilled in Short Selling: These are a group of 'gamblers,' but they bet on 'declines.' Before or during a crisis, they short the market through financial instruments (like futures and options). Simply put, the more the market falls, the more they earn. While this is a legitimate market activity, it is often seen as 'profiteering from national misfortune' and is highly controversial.
Holders of 'Hard Currency' Assets: When fiat money loses value, globally recognized 'hard currencies' become a safe haven, such as gold. During financial turmoil, many people sell stocks and real estate to rush into buying gold, causing gold prices to surge. Those holding these assets not only see their wealth not shrink but actually appreciate.

In Summary

Ultimately, a crisis acts like a filter, dividing people in society into two categories:

Those with Low Risk Resistance: They have high debt, low savings, and a single source of income. When the storm hits, they are the first to fall, becoming 'victims' of the crisis.
Those with High Risk Resistance: They possess substantial capital, diversified assets, and keen judgment. For them, the storm is not just a danger but a once-in-a-lifetime 'opportunity' to reshuffle the deck and seize more wealth.

Therefore, every crisis, to some extent, exacerbates social inequality. The wealthy use crises to become even richer, while ordinary people may take a long time to recover from the trauma.