Thursday, May 30, 2019

The richest 10% of households now represent 70% of all US wealth

Please read the whole article at the following link for some of the causes of the increasing transfer of wealth to the top.

Mark DeCambre
May 30, 2019

The rich are getting richer. It is a refrain that certainly has been uttered before, and likely will be again, as Deutsche Bank Securities’ chief economist points out that the gap between the haves and have-nots in the U.S. is, indeed, widening.

Deutsche Bank’s Torsten Sl√łk says that the distribution of household wealth in America has become even more disproportionate over the past decade, with the richest 10% of U.S. households representing 70% of all U.S. wealth in 2018, compared with 60% in 1989, according to a recent study by researchers at the Federal Reserve.

The study finds that the share of wealth among the richest 1% increased to 32% from 23% over the same period.

To make a finer point, Fed researchers say the increase in wealth among the top 10% is largely a result of that cohort obtaining a larger concentration of assets: “The share of assets held by the top 10% of the wealth distribution rose from 55% to 64% since 1989, with asset shares increasing the most for the top 1% of households. These increases were mirrored by decreases for households in the 50-90th percentiles of the wealth distribution,” Fed researchers said.


[The bottom 50% has such a small part of the wealth that they hardly show up at the bottom of the graph.]


Billionaire Ray Dalio said capitalism is no longer working for most Americans, adding that the expanding wealth gap is creating a volatile environment with disturbing parallels to the economic and social upheaval of the 1930s, he said in a blog on LinkedIn last month.

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