Tag: income inequality

The Wealth Gap Widens: Survey Shows Rich Now Means $2.3 Million Net Worth

The benchmark for wealth in America has undergone a dramatic transformation. According to a report by Fortune, Americans now place the threshold for being considered wealthy at an average of $2.3 million – a 21 percent surge since 2021 that underscores how inflation and escalating expenses have fundamentally reshaped financial aspirations. 

Though generational perspectives on wealth differ, there’s broad consensus that true prosperity encompasses far more than dollars alone, extending to security, wellness, and life quality.

Back then, a seven-figure net worth seemed like the ultimate financial destination. But with inflation and tariffs driving up prices across the board, that once-impressive sum has lost much of its luster.

The reality check comes from a Charles Schwab report showing that Americans now peg the wealth threshold at an average of $2.3 million.

The financial services giant polled 2,200 adults ranging from 21 to 75 years old between April 24 and May 23, capturing insights across multiple generations. Survey participants indicated that achieving “financial comfort” requires approximately $839,000.

Though the $2.3 million figure represents a modest decline from last year’s Modern Wealth Survey result of $2.5 million, it still towers 21% above the $1.9 million benchmark recorded in 2021.

Survey participants also expressed that the wealth threshold appears to be climbing, with 63 percent indicating it takes more money to achieve wealthy status today than a year ago, pointing to inflation, economic deterioration, and increased taxation as primary culprits.

Brad Clark, founder and CEO of financial advisory firm Solomon Financial, noted these views align closely with feedback from his clientele. While the United States boasts numerous millionaires when all assets are tallied, he explained to Fortune, this calculation typically incorporates home equity, leaving investable assets below the million-dollar mark for most.

“With so many middle-class Americans being considered millionaires, it stands to reason that the average individual would consider $2.3 million to be wealthy, as it may seem out of reach,” Clark said.

Yet financial professionals emphasize that wealth doesn’t automatically translate to lavish living across all dimensions.

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Just 0.001% hold three times the wealth of poorest half of humanity, report finds

Fewer than 60,000 people – 0.001% of the world’s population – control three times as much wealth as the entire bottom half of humanity, according to a report that argues global inequality has reached such extremes that urgent action has become essential.

The authoritative World Inequality Report 2026, based on data compiled by 200 researchers, also found that the top 10% of income-earners earn more than the other 90% combined, while the poorest half captures less than 10% of total global earnings.

Wealth – the value of people’s assets – was even more concentrated than income, or earnings from work and investments, the report found, with the richest 10% of the world’s population owning 75% of wealth and the bottom half just 2%.

In almost every region, the top 1% was wealthier than the bottom 90% combined, the report found, with wealth inequality increasing rapidly around the world.

“The result is a world in which a tiny minority commands unprecedented financial power, while billions remain excluded from even basic economic stability,” the authors, led by Ricardo Gómez-Carrera of the Paris School of Economics, wrote.

The share of global wealth held by the top 0.001% has grown from almost 4% in 1995 to more than 6%, the report said, while the wealth of multimillionaires had increased by about 8% annually since the 1990s – nearly twice the rate of the bottom 50%.

The authors, one of whom is the influential French economist Thomas Piketty, said that while inequality had “long been a defining feature of the global economy”, by 2025 it had “reached levels that demand urgent attention”.

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The Chicanery Behind Inequality Data

If self-described progressives decry anything more fiercely than poverty, it is income and wealth inequality. Some have even suggested that they would prefer low-income equality to inequality, regardless of how affluent the lowest level was. What counts is the gap.

The terms poor and low-income are relative, of course. We’d be better off talking about the poorer and lower-income. Also, it’s better to be poor in America than anywhere else if we factor in immeasurables such as good prospects. However, some people don’t understand the point or perhaps don’t want to understand it. Reasonable people ask, “How am I doing and how can I do better?” not, “How much less am I making than Jeff Bezos and Elon Musk [but not Taylor Swift or Juan Soto]?”

So let’s talk about inequality—not in the legal and political sense but in terms of income and wealth. You can’t go a day without hearing politicians and commentators complain about the top 1, 10, or 20 percent. Those complaints seem to be backed up by government statisticians and parts of the economics and sociology professions. Dissenters are rarely invited on television and podcasts. The impression given, to which compassionate laypeople will be vulnerable, is that America is riddled with extreme, even obscene (so Bernie Sanders says) inequality. Is it true?

Economists Phil Gramm and Donald Boudreaux make an overwhelming case against it in their book, The Triumph of Economic Freedom: Debunking the Seven Great Myths of American Capitalism. Gross inequality is one of those myths. (Last week I discussed their chapter on poverty.)

“[T]he claim that income inequality in America is high and rising on a secular basis is almost universally accepted as true,” Gramm and Boudreaux report. But: “Census numbers overstate the difference between the top and bottom quintile household incomes by over 300 percent.” Can they back up that claim? Let’s see.

The U.S. Census Bureau tells us that in 2017 the average income of households in the richest quintile (the top 20 percent) was 16.7 times greater than the average in the lowest quintile. No one can say, without other information, whether that number is appropriate or not. But is it accurate?

“The official Census data also show,” Gramm and Boudreaux continue, “that income inequality has grown on a secular basis and, by 2017, was 22.9 percent higher than in 1947.” That’s not all. According to the Organization for Economic Co-operation and Development, the United States has the worst record on this count among the wealthy countries—and it’s been getting worse.

Let’s pause for a word about the morality of income and wealth inequality. Individuals contribute unequally to the production of wealth, which improves living standards even for those who contribute little or nothing. So why would anyone expect their incomes and wealth to be equal? Now back to our regularly scheduled program.

Gramm and Boudreaux disclose a puzzle about the government’s numbers: “According to the official statistics of the nation’s two leading statistical agencies, the bottom 20 percent of American households had an average income of $13,258 in 2017 yet, in that same year, consumed $26,091 of goods and services.”

This fact raises the obvious question of how the bottom 20 percent of households can consume twice their income. This extraordinary gap between the official measure of income and the official measure of consumption has grown more or less steadily since 1967, when funding for the War on Poverty began to ramp up.”

That indeed is a puzzle. Could it be that the government agencies do not count everything that’s relevant? 

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As Anger Over Wealth Inequality Deepens, Wall Street Bonuses Are 4 Times a US Worker’s Pay

Amid growing discontent over surging economic inequality in the U.S.—and the Trump administration’s elevation of unelected billionaire Elon Musk to the upper reaches of the federal government—the New York state comptroller’s report on rising Wall Street bonuses was met with condemnation on Wednesday.

“Something is very broken and this is why people are so disenchanted,” wrote one commenter on an article about the report at The Washington Post. “There is no American dream. Just fat cats getting fatter.”

Another added that “the inequity of taxation on wealth in this country is shameful.”

New York Comptroller Thomas DiNapoli lauded Wall Street’s “very strong performance” in 2024 as he announced the average bonus paid to employees in the securities industry reached $244,700 last year—up 31.5% from 2023—as Wall Street’s profits skyrocketed by 90%. The bonus pool reached a record $47.5 billion.

But as researcher Rob Galbraith pointed out on social media, the record-breaking take-home pay of Wall Street executives was 3.5 times the median household income for a family in Erie County, New York—leaving doubt that many workers in the state will immediately join in celebrating what DiNapoli said was “good news for New York’s economy and our fiscal position” due to the bonuses’ impacts on tax revenue.

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On Wealth Inequality, the Left Has a Point

The federal government has been waging a war against the middle class and working poor since at least 1970. Wealth inequality has steadily increased since the early 1970s, and it’s not a coincidence. It’s a result of a series of policies. The government wants the masses of American working people broke, propertyless, and dependent upon elected officials for the crumbs they give back as handouts from taxes taken.

The most insidious attack on working people has been inflation, which really took off when the federal government decoupled the dollar from gold in 1971.

The inflation tax is the most regressive tax that currently exists in federal policy.

Inflation always taxes wages twice, once when the labor is performed and the worker is awaiting payment, and again when the wages are deposited into the worker’s checking account. But inflation leaves the rich man’s yacht untaxed.

No level of inflation, no matter how high, can ever take one cent of value away from a yacht. A yacht is always going to be a yacht, no matter what the value of money is.

Inflation taxes the poor man’s rent he advances to his landlord, but leaves private jets and vacation homes untaxed.

Want to know where this inflation tax goes? The stolen value of the inflation tax doesn’t just vanish out of thin air.

Some of it goes to the government; economists even have a name for the benefit government draws from the inflation tax. It’s called “seigniorage.”

Rich people generally don’t pay the inflation tax, and many of them benefit from it. Let’s say you’re a billionaire real estate mogul, not unlike Donald Trump, with a net-worth of $1 billion. You buy houses and real estate, and when you get your 20% equity, you pull that equity out and invest it into another real estate holding. So you have properties worth $5 billion, net assets of $1 billion, and (with only 20% equity in your properties) you also have $4 billion in mortgage debt.

4% inflation lowers the value of the mortgage debt you owe, since with CPI inflation you’re just going to raise the rent 4% next year. Inflation created by the Federal Reserve Bank becomes a gift of $160 million annually to your net worth ($4 billion x 0.04).

Every year.

And it enriches them more if inflation exceeds 4%, as it has in recent years.

If the CPI is 10% (as it nearly was in 2022), inflation alone adds 40% ($400 million) to this real estate mogul’s net worth. That doesn’t count the decrease in the nominal debt paid off by the real estate mogul’s tenants.

And this assumes the value of his property holdings is only increasing at the rate of CPI inflation, which it’s vastly exceeding, thanks to Federal Reserve Bank interest rate manipulation and federal housing subsidies and incentives.

Inflation enriches the real estate mogul with a boatload of mortgages that are now easier to pay off. It also benefits the hedge fund speculator and the banker, who are in the very businesses of being in debt.

In other words, the inflation tax makes the value of money flow directly from the wallets of wage-earners to the vaults of rich people who work with debt.

As long as the working man holds money in his possession, whether in the form of credit to his employer for his labor, in his pocket, or in his checking account, inflation taxes him. Only when the money is finally no longer due to him does the inflation tax end.

Working people know this truth intuitively because inflation raises prices at the grocery store, at the hardware store, at the department store, and the price of real estate.

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Wharton Students Reveal the Disconnect Between Elite College Kids and Reality

A professor at the Wharton School of the University of Pennsylvania inadvertently went viral when she revealed how out of touch some of her Ivy League students are with the reality that those of us who aren’t among the elite experience every day.

Nina Strohminger, a professor of legal studies and business ethics, tweeted, “I asked Wharton students what they thought the average American worker makes per year and 25% of them thought it was over six figures. One of them thought it was $800k. Really not sure what to make of this (The real number is $45k).”

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Another Famous “Socialist” Just Purchased a Million Dollar Home and His Defense Is Incredibly Weak

If you’ve never heard of Hasan Piker, he’s the nephew of The Young Turks host Cenk Uygur who’s made a name for himself as a political Twitch streamer. If you hop on to his channel while he’s on, he’ll either be reacting to YouTube videos or delivering such stunning political commentary such as how America deserved 9/11 or that the man who took Texas Rep. Dan Crenshaw’s eye was a “brave f***king soldier.”

Piker is, like most young first-world leftists, a socialist. As original a concept as this is, what’s even more common about him is that Piker’s popularity has made him wealthy with no small help from the innovation made possible by the capitalist system. This led to Piker doing exactly what young wealthy socialists do; he purchased a very expensive home.

Earlier this week, it was reported that Piker purchased a home in West Hollywood worth $2.74 million in the Beverly Grove neighborhood. Like other champaign socialists, this multi-million dollar home fits right in with his for-the-people, eat-the-rich preaching.

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