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.

  • Etterra@lemmy.world
    link
    fedilink
    arrow-up
    67
    arrow-down
    1
    ·
    7 months ago

    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.

    • m13@lemmy.world
      link
      fedilink
      arrow-up
      26
      arrow-down
      1
      ·
      7 months ago

      I’m sure the wealth will trickle down any moment now. Been waiting about 40 years now. Must be happening soon.

      • melpomenesclevage@lemm.ee
        link
        fedilink
        arrow-up
        2
        ·
        7 months ago

        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.

    • Crikeste@lemm.ee
      link
      fedilink
      arrow-up
      15
      arrow-down
      2
      ·
      7 months ago

      And no one will listen to you because America has a stake in the stupidity of its people.

    • Ragnarok314159@sopuli.xyz
      link
      fedilink
      arrow-up
      12
      ·
      7 months ago

      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.

    • melpomenesclevage@lemm.ee
      link
      fedilink
      arrow-up
      3
      ·
      edit-2
      7 months ago

      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.

      • Etterra@lemmy.world
        link
        fedilink
        arrow-up
        6
        ·
        7 months ago

        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.

      • capital_sniff@lemmy.world
        link
        fedilink
        arrow-up
        5
        ·
        7 months ago

        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.

      • SkippingRelax@lemmy.world
        link
        fedilink
        arrow-up
        2
        arrow-down
        3
        ·
        7 months ago

        You are right, but you are going against the narrative of to this post, hence all the downvotes from the angry mob.