The wealth of the 1% just hit a record $44 trillion
The wealth of the 1% just hit a record $44 trillion
Economists say the rising stock market is giving an added boost to consumer spending through what is known as the "wealth effect."
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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We have to take back that wealth. Right this is the reason why we have not the lifes we deserve. That are the funds that were siphoned off from our society. The people created this worth. Not some guys at the top.
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Correct. This is the stolen education of our future generations. This is the stolen lunch’s of our children. When does America wake up? I guess it takes physically seeing it happen. We are gonna be so down trodden before someone steps up it seems.
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No, don’t you see the real issues are trans people and some other random social problem Fox News tells conservatives to get in an uproar about.
Why we can’t have nice things.
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Inflation is how you get fucked. Get off the train, buy deflationary assets
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Economists say the rising stock market is giving an added boost to consumer spending through what is known as the “wealth effect.” When consumers and investors see their stock holdings soar, they feel more confident spending and taking more risk.
I somehow suspect that this thing about the wealth effect is total and utter bullshit.
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Just like trickle down economics.
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What's crazy is the reason people believe in it, is total coincidence.
Bill Clinton thought it was a good idea and republicans just implemented it wrong, and then when he was president the dotcom boom happened and everyone gave credit to Clinton's policy. It stopped being a conversation on if it worked, and became how best to implement it.
Like when Biden did the "child predators" bill, it wasn't harsh punishments that got crime under control, it was the normal effect of banning leaded gasoline 20 years earlier. But we're left with two "tough on crime" options even though that approach just doesn't work.
In both cases it's reminiscent of cargo cults, a good thing happened, so we just repeat what we were doing when it happened and expect the good thing again.
But with how long political careers are and how slow science moves, by the time we can prove it, they've built huge careers off the false assumption they had something to do with it. For them to admit they've been wrong, they have to realize they spent decades doing the wrong thing and while they had good intentions they've been causing harm.
That's a big ask for anyone, but especially for someone whose over 60.
So they ignore all evidence and double down even harder
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I don't think that is a meaningful metric. The least wealthy 50% should be spending money on necessities like food and housing. If someone without thousands of dollars in discretionary cash said "I'm going to start investing" I'd call them a fucking idiot.
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tHe EcOnOmY iS dOiNg GrEaT
No, the stock market is doing great at making the rich richer. The economy is fucking broken. On purpose. The crushing of the working class to enrich the 1% is capitalism working exactly as intended.
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I’m sure the wealth will trickle down any moment now. Been waiting about 40 years now. Must be happening soon.
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It only trickles down in blood, dear. And only that you shed. Kill your masters, kill for your masters, or die for them. Those are your options.
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And no one will listen to you because America has a stake in the stupidity of its people.
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Some much computational energy and human talent is wasted on finance coming up with imaginary and derivative products that do nothing but make rich people richer.
It’s nothing but speculative wealth that doesn’t actually exist, but the federal government prints bonds to underwrite this garbage. Then morons talk about how the feds print money that cause inflation, but are too stupid to realize why.
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Thank you! Economy is just who does what work and how we hand out the fruits. Money is just a bullshit abstraction they introduced.
We need to reset ownership. If it doesn't work for you, burn it down. Its what they do.
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We just shouldn't allow individuals to have over a billion dollars, just 100% tax on anything over a billion when combined assets exceed that number. Both because there's no good reason for any one person to have that much money and because as pathetic as American campaign finance laws are it's a legit national security risk for someone to have that kind of money to throw at their pet causes.
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If you had a billion dollars and never earned a penny more, you would actually find it hard to spend it all before you die. It could probably fully support several generations of your family. I'm totally fine with saying, "Congratulations! You maxed out the money counter in the game of Life!"
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We used to have a super high tax rate on the wealthy (91%) in the past, but it got repealed.
Let your house representative know you'd like that to return.
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Make it a million, with an M. Adjusted for inflation after inception, and including stock income. I've been saying it for years. Good luck convincing those in power who it would actually effect to enact it though.
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It is possible to become a millionaire without exploiting others in the same way the 1% do. I would find a limit somewhere in the tens of millions more reasonable
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Thanks Reagan, still waiting for it to trickle down you fucking liar.
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Milton Freidman is the one who convinced that POS it would work
This POS also taught Milton.
Think we should end all Economists
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If I ever get a time machine, I've got a baby to go delete real quick.
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The 1% would have hired some other actor...
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It should be trickling down any second now. Meanwhile, the Kellogg's CEO is telling people to eat cereal for dinner because they are poor.
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Not to mention that per weight beef is cheaper
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“Let them eat Corn Flakes” appears to be Kellogg’s CEO Gary Pilnick’s advice to cash-strapped shoppers who are spending the highest portion of their income on food than at any point in the last 30 years.
In an interview with CNBC last week, WK Kellogg CEO Pilnick said the company was advertising cereal for dinner to consumers looking for more affordable options. “Give chicken the night off,” the ad’s cheery tagline reads.
“The cereal category has always been quite affordable, and it tends to be a great destination when consumers are under pressure,” Pilnick said. “If you think about the cost of cereal for a family versus what they might otherwise do, that’s going to be much more affordable.”
That same guy, further known as "Asshat", made more than $4M in 2023. What a fuckin asshole.
I wonder what his advice would be on other topics.
"Man, I wish I could buy a house so that I have a stable living condition and a roof over my head."
Asshat: "A cardboard box on the street seems to be trendy way to be thrifty and obtain all you're asking for! I sell them, give me money!"Next time he complains about something, we should give him similar advice.
Asshat: "Man, I wish I could own a yacht like the other rich guys in my golf club."
Us: "This rowboat seems to be trendy way to be thrifty and obtain all you're asking for! I sell them, give me money!"
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Eat the rich
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So I’m not against eating (or better yet taxing) the rich, but if this article talks about the 1% global/worldwide, you’re likely in that 1%. The cutoff is like anyone with a job that makes 60k$ a year and no kids.
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According to the 2018 Global Wealth Report from Credit Suisse Research Institute, you need a net worth of $871,320 U.S. Credit Suisse defines net worth, or “wealth,” as “the value of financial assets plus real assets (principally housing) owned by households, minus their debts.” Source
So, yeah, but only if you've been saving your entire wage and paying no tax for the past 15 years.
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44 trillion would end world… problems.
Let’s END… the… problem.
🍽️ the 🤑
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Nice! Good job all. It sucks that our wealth is being harvested by a few psychos but dam we are working our asses off and generating vasts amounts of it. For someone else but still damn, super impressed.
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They deserve all their pederasty and cocaine, after such a hard day harvesting our labor.
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Meh, it's not all.
It's mostly by not working as a collective and getting rid of more jobs and having a select few work overworked even more efficiently using hyper advanced tools to do so that steal work from previous humans.You can usually spot them cause they brag about how much more efficient they are now that they microdose on Meth-Lite™ every day.
Also I know people will argue it helps, of course it helps, it's taking a daily stimulant the same way cocaine helped in the 80s. Doesn't make it less true.
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And here I am terrified to spend a penny.
Maybe the billionaires will buy each other’s shit and we can all just die already and let them play with resources without us.
I don’t know what I’m trying to say. Going to bed for my back to back 16 hour shifts over the next two days.
Good night fellow poors.
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"I could hire half the poor to kill the other half."
And in the end, even those jobs were automated.
https://www.forbes.com/sites/davidhambling/2023/08/07/flying-sniper-drone-takes-aim/?sh=77de157153fd
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The whole episteme of ownership we operate under would be a brilliant farce if it wasnt floating on an ocean of blood. Disrespect ownership. That doesn't just mean taking shit (but it absolutely also means taking shit)
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Capitalism is working as intended, support ticket closed.
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Out-of-control. The USA should return to the 1960's tax brackets.
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It's too late. We need to be even more aggressive now to correct the egregious imbalance.
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Sadly that wouldn’t have an impact on this. This is just unrealized stock wealth until it’s actually sold afaik. I think we shouldn’t allow people to take out loans on their stock holdings though. Or however it is people like Elon and such get their low risk loans to play with while keeping their money in the market.
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The market adjusts.
When Elon was forced to buy Twitter, all those loans came due as Elon Musk had to sell TSLA stock to pay for capital gains, then sell TSLA stock to bring down his margin and stay good, then finally sell TSLA stock to pay for Twitter.
There's no free lunch anywhere. Elon Musk is the kind of guy who takes insane risks (and honestly, its beginning to look like its all collapsing). Yes, USA has a lot of opporunity and we provide a lot of loans for dumbasses to hurt themselves, but that's a good thing in the great scheme of things. Eventually, it always collapses. It does take 10 to 20 years sometimes for the bad effects to build up though.
Or however it is people like Elon and such get their low risk loans to play with while keeping their money in the market.
That was interest-rate policy. Today loans are 10%+ for such effects. Our mistake was keeping rates too low for so long. But that's different than our tax policy.
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When do we start taking heads?
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Ionno. Anybody near Los angeles wanna learn carpentry together?
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Be the change you want to see in the world
But it won’t accomplish much, we have terrorism (or freedom fighters depending on your side) as is and the ruling class isn’t swayed
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"Terrorism" is a nonsense word. State terror forces who exist to brutalize and terrorize populations into stillness so much like the fucking grave are never terrorists. If I post myself consentually making out with another adult I find hot, I'd be one in like fifteen time zones.
Its nonsense, and if we want to go to the 'real' definition of terrorism; using violence to scare people into your agenda; that's literally all a state is.
Not raking an intentional editorial position on any kind of violence here; just that innocence is no protection, and truth is no defense.
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Absolutely disgusting. And conservatives are itching to cut taxes on the wealthy even further.
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... But it's the poor mother pulling herself up by the bootstraps, making the perilous journey north to work comparatively-shit jobs to help give her kids a brighter future that is apparently the problem to righties — who, by the way — we all benefit from their cheap labor in the first place...
$20 spent to a person making 100,000/year...
... Is the same as a single-billionaire spending $200,000.
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May be unpopular but congrats to all 7 of them
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Your comment made me think. Realistically, the top 1% represents tens of millions of people, but I would very much like to know if the top 1% has gotten bigger or smaller with wealth being more and more concentrated to the top.
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How does that boot taste
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(it was sarcasm) 🙂
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Wealth tax when?
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Taxes are just taking money by force for the common good.
We don't need to wait for Congress to do anything.
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That's over 5k per human currently alive.
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OFF. WITH. THEIR. HEADS.
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Ok hear me out. I just want to do quick maths. The world population is according to worldometer just over 8,1 billion people. So 81 million people make up the top 1%. So this article says they have now 44,6 trillion dollars. So $44600000000000/81000000 is equal to $550617.28 per person in the one percent. So that means if you have more than $550 000 in wealth, you are a one percenter.
I am curious if the wealth of the top % as a value has grown or outpaced the rate of inflation and population growth added together.
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The article is talking about the US. (Because of course it is).
So, it's only 3.3 million people, so it's $13.5 million each on average.
So that means if you have more than $550 000 in wealth, you are a one percenter.
No, that's not how distributions work.
If Elon Musk walks into a bar, it's a Nazi bar now. Also, if he walks into a bar with 99 other people in it, the average wealth of everyone in the bar is $2 billion. But, that doesn't mean that the typical person in that group has over $2b in wealth.
The top 1% contains Elon Musk plus about 3.3 million other people, but he skews the distribution considerably. That means the bottom of the distribution of the top 1% is around $6m, and it also includes people like Musk and Bezos who bring the average up to $13.5m per person.
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You'll be in the top 1% on much less than that. It's still heavily skewed towards the 0.0001%.
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Great math!
Global 1% and USA 1% are vastly different things. I wish which one was called out in headline. Based on first chart, this is USA 1%. Makes result of dividing by world population even more wild.
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Ok so I am looking at America specifically, they have since the 1928 till now had an inflation rate of about 3,3%. Now the Fortune 400 companies had a growth of 9,9% during that same period. So if a kids parents invests in their name $1350 a month for 18 years, assuming semiannually compound, that would make the kid top 1% globally.
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According to Washington Post, that places the kid at top 38.5% in USA
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I assume that includes house valuations and retirement savings and stuff which would include a bunch of upper middle class people over 40
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Well it seems I made wrong assumptions in my initial calculations. But they are using wealth, so yes house valuations and retirements plus investment. But here is the caveat, you have to minus dept. So if you have houses and cars worth let's make this figure up, $15mil, maybe $1mil in retirement, savings, investment and loose cash you might be worth $16mil to the common people. But if you have let's say $20mil in dept, then according to wealth valuations a homeless person has more wealth than you. Remember wealth estimates like this does not include income and earning potential
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It’s Guillotime™️
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Was Reagan in Australia when he mentioned trickle-down economics?
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There was a coalition of conservative governments during that time. Thatcher in the UK, Mulroney in Canada and Bon Hawke in Australia.
Even if Hawke was the labour party, he still made significant economic reforms to align with what was going on in the western world.
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Oxfam released an analysis saying the top 1% got 63% of all new wealth generated from 2020-2022. According to UN analysis the top 10% own 85% of all the wealth.
According to Oxfam, "an annual wealth tax of up to 5 percent on the world’s multi-millionaires and billionaires could raise $1.7 trillion a year, enough to lift 2 billion people out of poverty, fully fund the shortfalls on existing humanitarian appeals, deliver a 10-year plan to end hunger, support poorer countries being ravaged by climate impacts, and deliver universal healthcare and social protection for everyone living in low- and lower middle-income countries."
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And don't worry, "endless growth" means that you need to get up bright and early today to make them even more!
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Wow, this is great news!! Imagine all the trickle down. 😂 😂 😂
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Economists say the rising stock market is giving an added boost to consumer spending through what is known as the “wealth effect.”
Read: the economy is re-adjusting to cater to the luxuries of the ultra-rich, not to more efficiently fulfill the needs of the vast majority. So we can't even have that little relief now.
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That's great! Congratulations to all those wealthy individuals! They prove that hard work does pay off.
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Bribing public officials is soooo exhausting
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But have you tried being born rich?
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Seize the means of guillotine mass production when?
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Does anyone know what the wealth of the bottom 99% is?
