News ID: 261445
Published: 0416 GMT November 11, 2019

Richest 1% in US surpassing wealth of middle class: Report

Richest 1% in US surpassing wealth of middle class: Report

The US economic expansion has enriched the top 1 percent of American households to the point that they now control more than half of the equity in the US stock market, according to a new government study.

The very richest Americans have enjoyed huge returns over the past decade since the great recession, with assets of about $35 trillion in the second quarter, nearly as much as the $37 trillion held by the middle and upper-middle classes in the US, according to data from the Federal Reserve, Presstv Reported.

The rich pump money into stocks and use the interest rates from the stock market to invest money into exclusive hedge funds and private equity funds, said Stephen Colavito, chief market strategist at Lakeview Capital Partners in Atlanta.

Many such funds require $5 million of investments to qualify,” Colavito told Bloomberg News. “The wealthier that the wealthy get, the more opportunity they have,” he said.

The one-percenters will soon surpass the middle and upper-middle classes, Bloomberg News said in an analysis. Household wealth in the upper-most bracket grew by $650 billion in the second quarter of 2019, while Americans in the 50th to 90th percentiles saw a $210 billion gain.

The top 1 percent of US taxpayers had incomes starting at $515,371 in 2017, according to the latest data by the Internal Revenue Service.

The bottom 50 percent of American households hold just 6 percent of assets in the US.

The massive income inequality in the US has triggered anxiety among Americans and politicians for years, energizing right-wing populism and the emergence of nationalist leaders like President Donald Trump, and pushing the Democratic Party towards the left.

Income data released by the US Census Bureau in September showed that upper-income Americans are capturing more of the economy’s gains. The data shows the top 20 percent accounted for 52 percent of household income last year, compared with 49 percent in 1999.

 

 

   
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