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.

https://www.msn.com/en-us/news/markets/the-richest-10percent-of-households-now-represent-70percent-of-all-us-wealth/ar-AABRC2i?fbclid=IwAR2W2MVeFkBwF10XD_t5KPnMUOTvrAssF7j65kht0CSWXkzBiyGUCeEw6cA

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.

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



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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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