Weekly Wisdom | America's Rich
Facts and Analysis
Poll after poll shows the American people want President Trump and his administration to pivot more to domestic issues. Unless you are in the top 1% economically, inflation and the mediocre Biden economy have brought many Americans to the brink. The rich, however, have been doing quite well since the beginning of the 21st century. Technology, real estate, and many asset classes have propelled affluent Americans to a level of wealth never seen in world history. Unsurprisingly, President Trump’s populism and Occupy Wall Street were partially in response to the growing wealth gap of the past two decades. Should we despise the well-to-do? Let’s start with the facts first.
Below, a clear-eyed view of America’s moneyed:
America’s richest person, Elon Musk, who is also the world’s richest person, has a net worth exceeding $800 billion. He’s nearly $600 billion richer than the world’s second richest person, Google co-founder Larry Page ($237 billion). Most analysts expect Musk to become the first trillionaire within the next 2-3 years.
The top 10 richest Americans have a net worth exceeding $2.4 trillion, which is greater than the GDP’s of Brazil and Canada. America currently has 989 billionaires, which represents 30% of the world’s billionaires. Put another way, 1 in 3 billionaires worldwide is an American citizen.
Beneath the global elite, there are still many wealthy people in the United States. According to Federal Reserve data, there are currently 430,000 households - 4 NFL stadiums in number - in the United States with a net worth of at least $30 million. From this group, 74,000 households have a net worth of at least $100 million.
The median household net worth is $192,700; the top 1% is at $13.6 million. The bottom 50% of Americans have a total wealth between $4-$5 trillion, while the top 1%’s total wealth is between $45-$50 trillion. In numerical terms, 3.3 million Americans have 10 times the wealth of the 165 million Americans in the bottom 50%. This insane wealth gap is a driver of our increasingly radical politics.
The above-listed facts clearly show an unacceptable distribution of resources among the population. And while the majority of the rich aren’t monsters, the reality is that the American people want the opportunity to join the middle and upper classes. But inflation is eroding their purchasing power, and too many are losing hope in our economic system. As a result, the continued wealth disparity between the top 10% of Americans versus the rest threatens to destroy our 250-year-old republic. America’s wealthiest citizens should increase both their generosity and engagement with the less fortunate in our country. And we should hope and pray that the dream of AI is realized and an economic miracle lifts all boats.
