Wealth Distribution USA (Patreon)

The rich are getting richer faster than ever before:

• US household net worth has risen ~$56 TRILLION since Q1 2020 and hit a record $160 trillion in Q3 2024.

• Currently, the top 10% own $111 trillion of all wealth, accounting for 69% of the total.

• The top 0.1% alone own a massive $22 trillion, reflecting 14% of household net worth.

• On the other hand, the bottom 50% holds just $3.9 trillion, or 2.4% of wealth.

• This comes as the S&P 500 and the Nasdaq 100 have risen 128% and 166% since Q1 2020 while national home prices have surged ~50%.

The wealth gap is growing - the Q is WHY?

Asset Appreciation:

Stocks and Equities - substantial gains in stock indices like the S&P 500 (+128%) and Nasdaq 100 (+166%) since Q1 2020 have disproportionately benefited those who own stocks, which tend to be wealthier individuals.

Real Estate Values: Home prices have increased by about 50% during the same period, providing a significant wealth boost for homeowners, particularly those with properties in high-demand areas. Since wealthier individuals are more likely to own multiple or higher-value properties, they benefit more from this appreciation.

Fiscal Stimulus: The distribution of wealth has been influenced by fiscal policies like tax cuts for the wealthy, which have not been matched by increases in income or wealth for lower-income groups. This is called the Cantillon Effect - those closest to the money printer get the most... there is no trickle down.

Income Inequality: The top earners have seen their incomes grow at a faster rate, partly due to corporate profits, executive compensation, and investment income, which benefits from lower capital gains taxes compared to wage income.

Access to Financial Tools and Knowledge:

Wealthier individuals have better access to financial tools and investment opportunities and networks that can sniff out opptys before anyone else... this is what this community is all about.... give those who are behind an edge to catch up!