The total net worth of the top 1% is defined by the Fed as those who have wealth over $11 million. The wealth of the top 1% just hit a record $44 trillion after shooting up two trillion in the 4th quarter thanks to gains from stock holdings.
This marked the latest addition to an unprecedented wealth boom that began in 2020 with the Covid-19 pandemic market surge. The wealth of the top 1% has increased by $15 trillion or 50% since 2020. The middle 50% to 90% of Americans saw their wealth increase by 50% over the same period.
Currently the top 10% of Americans own 87% of all individually held stocks and mutual funds while the top 1% of Americans own half of all individually owned stocks. The top 10% accounted for 67% of all wealth at the end of the fourth quarter and the top 1% accounted for 30% of all the nation’s wealth at the end of the fourth quarter.
This all comes in conjunction with a rising stock market that is in turn increasing consumer spending because inventors see holdings soar and feel more confident spending their money and taking on risk. Mark Zandi, Chief Economist of Moody’s Analytics says this points to the vulnerability of the economy if the stock market were to falter. It does also point to the fact that stock boosts typically and historically have helped the wealthy and not really middle or lower class as much. It has been proven that even though inequality dipped over the past two years, the wealth gap has since slightly crept back.
4 comments:
WOW! I would have never thought that the top 1% of the wealthiest people would control over half the stocks. This is an insane number. I would be curious to see what the top 25% of people own.
Those stats about the wealth increase from covid-19 are crazy. I never would've though that the middle 50-90% and the top 1% both saw 50% increases in wealth during this time. I wonder was the minimum to be considered in the top 1% changed during that time too.
I agree with Tim, I would’ve never thought that the top 1% of the wealthiest had such a high level of control over stocks and overall wealth. It's quite surprising to see that their wealth actually increased during COVID-19, but it also makes sense given that income inequality grew during the pandemic.
Interesting, would you consider this a failure of the market or a failure of society? The top 1% of Americans own $44 trillion meanwhile 60% of Americans live paycheck to paycheck. You can consider this a result of the capitalist market, where the winner takes all. It is a complex issue that involves an understanding of both market dynamics and societal structures to reach a solution.
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