The wealthiest 10 percent of Americans now own 89 percent of all US stocks, according to an analysis From CNBC.
The top 1 percent of the wealthiest in corporate equities and mutual funds rose more than $6.5 trillion during the coronavirus pandemic, according to the network Federal Reserve data review.
The bottom 90 percent of shareholders combined added $1.2 trillion, underscoring the stock market’s role as the biggest source of wealth creation among Americans and the biggest driver of wealth inequality.
While the market is widely owned, its profits are not administered equitably, with critics arguing that its performance should not be viewed as a short-handed indicator of people’s economic health or well-being.
The share of corporate equity and mutual funds owned by the top 10 percent hit a record high in the second quarter of 2021, but the bottom 90 percent held about 11 percent of the individually held stock, down one percent from the start . of a public health crisis, the report found.
According to the report, net assets among the top 1 per cent now stand at a record-high 32 per cent, with gains of around 70 per cent of total assets coming from the stock market in the past 18 months.
The increasing concentration of wealth among the nation’s wealthiest has also seen an erosion of financial security and wealth among middle-class earning families, who hold a smaller share of American wealth than the top 1 percent.
According to Federal Reserve data, 77 million households in the middle 60s saw their combined wealth fall to 26.6 percent of total wealth. Analyzed by Bloomberg.
The pace of the country’s super-rich accelerated during the Covid-19 crisis, which produced more than 100 new billionaires.
As of March 2020, there were 614 people with 10-figure bank accounts in the US, according to a report From the Institute for Policy Studies and Americans for Tax Fairness. Now there are 745.
US billionaires received more than $2 trillion in wealth during the pandemic, with their collective wealth now exceeding $5 trillion, down from $3 trillion in March 2020 to $5 trillion by October 15.
recently ProPublica. check from found that more than two dozen people paid a “true tax rate” of less than 4 percent on a combined $400bn increase in their wealth between 2014 and 2018, while the average American household earned about $70,000 a year and Paid 14 percent in federal. do.
A group of civil rights and labor organizations has urged Congress to include a billionaire income tax as part of President Joe Biden’s Build Back Better law, a key part of his domestic agenda.
Senator Ron Wyden has proposed a tax on assets such as stocks for those who have more than $1 billion in assets, in an effort to target wealth that largely escapes taxation. In a statement last month, Senator Weyden said the tax “would go a long way toward creating a fair tax code, rather than one that is mandatory for working people and another that is optional for those lucky enough.”
Credit: www.independent.co.uk /