Weekly Wisdom | America's Rich, Part 2
More Facts
Last week, we looked at wealth statistics regarding America’s “rich,” learning the stunning magnitude of America’s economic divide. Simply put, there are many thousands of high net worth individuals and households residing in the United States. And considering inflation is running at 3.3% and the average American is falling behind, the well-off are being looked at with more scrutiny than prior decades.
This week offers a more in-depth look at America’s affluent:
Currently, the S&P 500 and Dow Jones Industrial Average indexes are close to all-time highs. Home values in the United States are also, in nominal terms, at the highest level ever. Considering the Iran War is still ongoing, this is remarkable.
The top 10% of households by wealth own around 85% of all equities via mutual funds, etfs, pension funds, etc. The top 1% own an astounding 50% of the value of the stock market. The bottom 50% of American households only own 1% of stocks, making it difficult for them to acquire wealth. The so-called Trump Accounts are President Trump and his administration’s way of helping the average American build wealth over time. A one-time $1,000 deposit is made by the government to accounts created for eligible newborns.
According to Moody’s, the top 20% of households account for nearly 60% of consumer spending. Thirty years ago, the top 20% only accounted for 33% of consumer spending, representing a staggering 78.8% increase!! This is strong evidence of what economists call a k-shaped economy, where the well off do better while the middle and working classes fall further behind.
The top industries for the top 10% of income earners are finance, technology, healthcare, law, and real estate. When it comes to the top 10% defined by wealth, tech founders, small-to-medium business owners, and serious investors in the market dominate the list.
Unlike our political adversaries on the left, conservatives and nationalist-populists don’t loathe the rich as a class. However, the data clearly shows that the wealth gap has exploded to the detriment of the middle and working classes. President Trump should pivot to his base and to blue collar workers by prosecuting white collar crime, eliminating anti-competitive regulations that enrich corporations, reducing the federal budget to lower inflation, and championing the American worker by deporting illegal immigrants. Doubling down on these policies will reduce class resentment that Democrats seek to exploit and will provide an opportunity for the average American to live their American dream.
