In the medium term, the subprime crisis eventually improved employees' situation. Why? Will the same happen with the COVID crisis?

The subprime crisis in 2008-2009 was followed by a period of under-employment and small wage increases in the United States and the euro zone. But in the medium term, wages picked up and income distribution changed in favour of wage earners. This medium-term change can be attributed to: The sustained expansionary fiscal and monetary policies, which eventually led to a rise in the participation rate, the employment rate and wages (this was the so-called “overheating policy”); A political determination to improve the situation of the poorest households and reduce inequality. In all likelihood, the same causes will have the same effect after the COVID crisis: a medium-term improvement in the situation of wage earners with the lowest incomes.