Wealth Bonanza: Risks and Opportunities
Posted June 26, 2024
There has been an extraordinary surge in Wealth in the United States since the end of 2019.
Household Wealth soared by $44 trillion or by 38% between then and the first quarter of this year.
During that period of just four and a quarter years, Household Assets increased 12 times more than Household Liabilities.
To put that increase in Wealth in perspective, $44 trillion is:
- Large enough to pay off all US Government Debt ($34.7 trillion) with $9.2 trillion left over, and
- 1.6 times the size of everything produced in the United States last year (i.e., US GDP).
The latest Macro Watch video begins by analyzing this mind-boggling surge in Wealth by describing the growth in all the components contributing to this increase in Household Net Worth.
Next, the video discusses the causes behind the creation of so much Wealth in such a short space of time.
Then, looking to the future, the video considers whether this enormous expansion of Wealth is set to continue or if a period of large-scale Wealth destruction lies ahead. Four causes for concern are identified and weighed against two reasons for optimism.
The problem of increasing Income Inequality is the next topic taken up. The wealthiest 1% of Americans own 30% of all the country’s Wealth. The wealthiest 10% own 67% of all the Wealth, twice as much as the remaining 90% of the population. And the gap between the rich and the poor continues to widen.
The video concludes by considering if a Wealth Tax on the country’s richest 10% would be effective in reducing Income Inequality and lowering government debt.
Macro Watch subscribers can log in and watch this video now for all the details.
This video is 21 minutes long and contains 57 slides that can be downloaded.
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