COVID-19 worsens inequalities by hitting low-skilled workers, youth, and women hardest. Inequalities in income, wealth, education, gender, health reinforce each other. Predistribution via public education narrows market income gaps. Social transfers and taxes reduce inequality by over one-third in advanced economies. Emerging economies redistribute far less effectively. Countries spending more on social sectors reduce inequality better. Public spending compensates for rich-poor gaps in child investments. Fiscal policies boost intergenerational mobility via human capital. Labor tax wedges and participation rates discourage second earners. Refundable credits and childcare encourage female participation. Conditional cash transfers incentivize school and health. Active labor policies maintain employment links. Social transfers target bottom of distribution – taxes hit top. Well-targeted transfers beat high aggregate spending. Progressive taxes and loophole limits reduce inequality. Consumption taxes fund services benefiting poor more. Digitalization improves targeting and cuts fraud. Fiscal adjustment needed amid high debt and aging pressures. IMF programs adjust deficits while protecting vulnerable.