- cross-posted to:
- aboringdystopia@lemmy.world
- cross-posted to:
- aboringdystopia@lemmy.world
Key Points
- The wealth of the top 1% hit a record $44.6 trillion at the end of the fourth quarter.
- All of the gains came from stock holdings thanks to an end-of-year rally.
- Economists say the rising stock market is giving an added boost to consumer spending through what is known as the “wealth effect.”
The wealth of the top 1% hit a record $44.6 trillion at the end of the fourth quarter, as an end-of-year stock rally lifted their portfolios, according to new data from the Federal Reserve.
The total net worth of the top 1%, defined by the Fed as those with wealth over $11 million, increased by $2 trillion in the fourth quarter. All of the gains came from their stock holdings. The value of corporate equities and mutual fund shares held by the top 1% surged to $19.7 trillion from $17.65 trillion the previous quarter.
While their real estate values went up slightly, the value of their privately held businesses declined, essentially canceling out all other gains outside of stocks.
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Most people don’t have any money to invest at all, much less enough money to safely invest to live on comfortably. Most people live paycheck to paycheck just hoping nothing major comes up like a sudden illness or broken car.
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What? Open for whom? Competition between who?
Not really. The stock market doing great is the result of low interest rates, massive tax cuts for the wealthy and corporation, and the recent covid money printing. All of that money, that the wealthy hoard, needed somewhere to go and it went into assets like stocks and housing.
The solution is to tax the corporations and wealthy. Take that money and put it back into society. For example, by fixing our infrastructure, funding our schools, and medicare for everyone. The beauty of being early in this hyperinflation cycle is that we can make actual policy decisions to reverse course before it is too late.
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You are right, but you are going against the narrative of to this post, hence all the downvotes from the angry mob.