America is the richest country the world has ever seen.
Of course, this wealth is not (and never has been) distributed equally.
It is concentrated.
The top 10% control almost 70% of the wealth in this country. The top 1 percent owns the same amount of wealth as the bottom 90 percent (each accounting for 32 percent of the total).
The top 1 percent own more than 50 percent of the sharesThe bottom 50% own 1% of the shares.
And it’s not just the top 10% or even the top 1% who are experiencing the largest relative gains in wealth. The top 0.1% saw by far the biggest growth since 1989:
In 1989, the top 0.1% controlled 9% of the wealth in America. Today, this group owns 15 percent of the money pie.
Wall StreetJournal There are some very revealing figures about the super-rich class in America:
There are approximately 430,000 U.S. households worth $30 million or more, according to a Zidar analysis of Federal Reserve data. That includes about 74,000 worth $100 million or more. Over the past few decades, the growth in the number of very wealthy households has outpaced overall population growth.
Here is the attached chart:
To be clear, these figures are adjusted for inflation. $50 and $100 million clubs seem to be letting more and more people in.
According to the Journal, the wealth of the top 0.1% has increased more than 13-fold over the past 50 years, and that’s even after adjusting for inflation.
Some might argue that this is a good thing because so much money is a motivator.
Some people might argue that this is a bad thing because so much money is concentrated in the hands of so few people.
Others might say that this is a natural consequence of the system we work within.
Whatever your feelings about how much wealth the top 0.1% control, what are some potential consequences of increasing wealth concentration at the top?
Here are some thoughts, questions and observations:
That’s one of the reasons why there are so many of us. rich people who don’t feel rich. Sure, I make good money, I have a nice house and a portfolio that would put 95% of the population to shame… but I don’t have a holiday home!
Of course I have a holiday home… but I don’t fly private!
Of course I fly private… but I don’t have a yacht!
Sure, I have a yacht… but I don’t own an NBA franchise!
More super-rich people mean regular old rich people don’t feel so special. This is how it is obtained rich people who consider themselves middle class.
Will artificial intelligence worsen inequality? The consequences of AI are still uncertain, but there’s a good chance it will make company owners better off at the expense of workers.
Productivity increases. More efficiency. Fewer workers were needed for certain tasks.
Equity in many companies may become even more concentrated.
How many people will disdain AI in this scenario? What would be the political reaction in such a situation?
Speaking of politics…
Wealth inequality means more extreme election outcomes. How will you ensure that Donald Trump is re-elected president at the same time that Zohran Mamdani is elected mayor of New York?
Inequality means rich people have more power over election spending, but more politicians will focus on the financial fears of the bottom 90%.
Right or wrong, this means voters will be willing to give new voices and ideas a chance.
Can anything stop this train? The idea of imposing a wealth tax on the super-rich is gaining traction among more politicians and countries, but it is much harder to implement than it seems.
Rich people are very good at protecting their wealth from taxes.
Anything is possible, but unless some drastic measures are taken, wealth inequality is unlikely to improve anytime soon.
Further Reading:
Top 1%
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