The wealth of the 1% just hit a record $44 trillion - eviltoast
Economists say the rising stock market is giving an added boost to consumer spending through what is known as the "wealth effect."

cross-posted from: https://lemmy.world/post/13724318

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.

    • Viking_Hippie@lemmy.world
      6·
      8 months ago

      And thus more inclusive. Gotta make sure that everyone who needs to use one can afford to.

      I have a dream that one day every nation will rise up and live out the true meaning of a new creed: “We hold these truths to be self-evident: that all billionaires are created evil.”

      With apologies to MLK. Though, being a pro-union socialist himself, I’m betting he’d agree with the core message 😉

      • breadsmasher@lemmy.worldEnglish
        6·
        8 months ago

        Use capitalism to destroy capitalism. Invest in my guillotine production company, own a piece of every guillotine sold!