Wealth Inequality in the U.S.

SOURCE www.nbclosangeles.com
The wealth of the top 1% in the U.S. reached a record $44.6 trillion by the end of the fourth quarter, driven mainly by gains in stock holdings. Middle-class Americans also saw their wealth increase, but the top 1% captured the majority of the gains.

Key Points

  • The wealth of the top 1% in the U.S. hit a record $44.6 trillion, with most gains from stock holdings.
  • The top 1% own 50% of individually held stocks and 87% of individually held stocks and mutual funds.
  • Stocks represent a growing share of assets for the wealthy, but their spending habits may not boost the consumer economy significantly.

Pros

  • Rising stock market values have boosted consumer confidence and spending.
  • Middle-class Americans have also seen their wealth grow.

Cons

  • Wealth inequality remains high, with the top 1% owning a significant portion of stocks and mutual funds.
  • The wealth gains of the top 1% may not significantly impact the consumer economy.