Richest 1% of Americans Close to Surpassing Wealth of Middle Class

[simvastatin]

The U.S.’s historic economic expansion has so enriched one-percenters they now hold almost as much wealth as the middle- and upper-middle classes combined.

The top 1% of American households have enjoyed huge returns in the stock market in the past decade, to the point that they now control more than half of the equity in U.S. public and private companies, according to data from the Federal Reserve. Those fat portfolios have America’s elite gobbling up an ever-bigger piece of the pie.

 

The very richest had assets of about $35.4 trillion in the second quarter, or just shy of the $36.9 trillion held by the tens of millions of people who make up the 50th percentile to the 90th percentile of Americans -- much of the middle and upper-middle classes.

 

halk up at least part of their good fortune to interest rates, said Stephen Colavito, chief market strategist at Lakeview Capital Partners, an Atlanta-based investment firm for high-net-worth investors. People can’t get much of a return on certificates of deposits and other passive investments, so they’ve pumped money into stocks and propped up the market overall, he said.

 

In turn, those investments make the wealthy eligible to put money into exclusive hedge funds and private equity funds. Many such funds require $5 million of investments to qualify.

“The wealthier that the wealthy get, the more opportunity they have,” Colavito said.

While the Federal Reserve data measure wealth, by another measurement the top 1% of taxpayers had incomes starting at $515,371 in 2017, according to the latest Internal Revenue Service data.

For now, those Americans in 90th to 99th percentiles -- well-to-do, but not the super rich -- still control the biggest share of wealth, with $42.6 trillion in assets.

The lone group left out of the fun: the bottom 50% of Americans. Those households have 35.7% of liabilities in the U.S. and just 6.1% of assets.

Age also plays a role in wealth. Some young people have recently taken to mocking older Americans for being out of touch, hurling the term

 “OK Boomer” 

 around social media. 

 

https://www.bloomberg.com/news/articles/2019-11-09/one-percenters-close-to-surpassing-wealth-of-u-s-middle-class

 

Edited November 10, 2019 by prozac

[winkie]

The middle class everywhere are contracting......what we are seeing is the top raking it in, and the bottom are in the pits......only got to travel a bit and open your eyes......can try hiding under the carpet but the carpet now is not big enough to hide it.?

[Riedquat]

Ever the problem with the capitalist system. I'm not advocating any particular alternative as better, they've got other, worse issues, but a system based on rewarding capital is inevitably going to see those with the most gain the most (on average, some will screw up and lose it). And with ever-increasing means of doing that without having to get the help of a lot of other people, or at any rate joining in the race to pay them less and less, that'll accelerate.

 

[chronyx]

27 minutes ago, Riedquat said:

Ever the problem with the capitalist system. I'm not advocating any particular alternative as better, they've got other, worse issues, but a system based on rewarding capital is inevitably going to see those with the most gain the most (on average, some will screw up and lose it). And with ever-increasing means of doing that without having to get the help of a lot of other people, or at any rate joining in the race to pay them less and less, that'll accelerate.

 

Capitalism and communism are similar in that they both work perfectly when humans aren't involved 

[Simhadri]

Same thing was happening just before great depression. Good luck, if it happens like that, all will be ******ed. Alternative is Japanese style slow decay which is lesser pain but long travel. They will automate everything and 80% will be poor and 20% will be rich. No middle class left. 

[EnglishinWales]

middle class will be left but much smaller, I read before the industrial revolution society was something like 1% nobility or clergy 9% skilled artisans or merchants 90% agricultural workers and labourers so the expectation of the majority being middle class is possible but it seems the 1% prefer it to more like a pyramid

Edited November 11, 2019 by EnglishinWales

[nome]

On 10/11/2019 at 15:19, winkie said:

The middle class everywhere are contracting......what we are seeing is the top raking it in, and the bottom are in the pits......only got to travel a bit and open your eyes......can try hiding under the carpet but the carpet now is not big enough to hide it.?

I agree the very top are raking it in more than ever, but I wouldn't say the very bottom are ''in the pits'' and worse off than ever... at least not those who know how to play the benefits/tax credits system, especially when it comes to breeding kids they couldn't otherwise afford.

 

Edit - Obv I'm referring to the UK, I wouldn't know if America has the same level of ludicrously generous and easily exploitable benefits system as the UK

Edited November 15, 2019 by nome

[GregBowman]

On 11/11/2019 at 22:43, EnglishinWales said:

middle class will be left but much smaller, I read before the industrial revolution society was something like 1% nobility or clergy 9% skilled artisans or merchants 90% agricultural workers and labourers so the expectation of the majority being middle class is possible but it seems the 1% prefer it to more like a pyramid

I read exactly the same thing at the turn of the century automation will inevitably return the model to a pre industrial revolution shape - you will either own it or have a skill niche which pays well 

The middle class was rapidly expanded with Taylorism in the 20th century with layers of management that is being eroded by AI, automation, web based sales models and flat hierarchies  

[mallish]

On 11/10/2019 at 3:14 PM, prozac said:

Age also plays a role in wealth. Some young people have recently taken to mocking older Americans for being out of touch, hurling the term

 “OK Boomer” 

 around social media. 

If I was a billionaire I would laugh and I would have better things to do than look at fb and twitter and insa 

Being on social media is being "in touch" hummmmmmmm 

 

 

[Social Justice League]

Best we just see the whole capitalist system go down the tubes.

Then we can get back to a proper survival of the fittest model.

[Errol]

On 11/11/2019 at 22:43, EnglishinWales said:

middle class will be left but much smaller, I read before the industrial revolution society was something like 1% nobility or clergy 9% skilled artisans or merchants 90% agricultural workers and labourers so the expectation of the majority being middle class is possible but it seems the 1% prefer it to more like a pyramid

That's why the system we are moving into has been termed by some - Neo-feudalism.

[simvastatin]

5 hours ago, GregBowman said:

I read exactly the same thing at the turn of the century automation will inevitably return the model to a pre industrial revolution shape - you will either own it or have a skill niche which pays well 

The middle class was rapidly expanded with Taylorism in the 20th century with layers of management that is being eroded by AI, automation, web based sales models and flat hierarchies  

The end of the middle class, would mean a 90% labour/serf class as Englishmanwales said.

i wonder what their salary would be..

[GregBowman]

10 minutes ago, prozac said:

The end of the middle class, would mean a 90% labour/serf class as Englishmanwales said.

i wonder what their salary would be..

I am not saying its a good thing and not sure it will play out like that.

More access to education means more owners and artisans are SEO specialists etc  as well as builders, service engineers etc - think that class will be bigger but a lot of roles won't be around 

[winkie]

6 hours ago, nome said:

I agree the very top are raking it in more than ever, but I wouldn't say the very bottom are ''in the pits'' and worse off than ever... at least not those who know how to play the benefits/tax credits system, especially when it comes to breeding kids they couldn't otherwise afford.

 

Edit - Obv I'm referring to the UK, I wouldn't know if America has the same level of ludicrously generous and easily exploitable benefits system as the UK

Have you travelled within the USA there are people living in very bad conditions, sleeping on streets, in cars....skid row..... benefits are only paid depending on state 26 to 30 weeks, then you are on your own....other benefits are dependent on insurance and previous contribution...... inequality is very open and easy to see.....they call it down on your luck, any person could very easily be down on their luck....it doesn't take much to cross that line.?

[sPinwheel]

5 hours ago, winkie said:

Have you travelled within the USA there are people living in very bad conditions, sleeping on streets, in cars....skid row..... benefits are only paid depending on state 26 to 30 weeks, then you are on your own....other benefits are dependent on insurance and previous contribution...... inequality is very open and easy to see.....they call it down on your luck, any person could very easily be down on their luck....it doesn't take much to cross that line.?

Could be worse. We could have a dumb blonde idiot liar in the highest office.

[Sawitcoming]

Only a few mins long. Well worth a watch