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.

  • theotherverion@lemmynsfw.com
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    8 months ago

    Even as a someone with no experience, I can be accepted as a “lawyer” by a law company. But no would ever accept me because they it would harm the company very much.

    Same thing applies for companies. There is already a motivation for their leaders to lead them in the best way possible even without limited maximum amount of money. In addition, there is no such a company that is so critical that its crash would destroy the world.

    • KevonLooney@lemm.ee
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      8 months ago

      There’s no real impact on anyone’s standard of living. Literally no one’s life is worse off, and the country is better off. What’s the downside?

      • theotherverion@lemmynsfw.com
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        8 months ago

        Because it is simply limiting what a person can achieve. Hence why I would rather see sanctions on specific actions.