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.

  • SamsonSeinfelder@feddit.de
    106·
    8 months ago

    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.

    • aStonedSanta@lemm.ee
      54·
      8 months ago

      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.

      • Ragnarok314159@sopuli.xyz
        7·
        8 months ago

        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.