Economists say the rising stock market is giving an added boost to consumer spending through what is known as the "wealth effect."

Key Points

  • The wealth of the top 1% hit a record $44.6 trillion at the end of the fourth quarter.
  • All of the gains came from stock holdings thanks to an end-of-year rally.
  • Economists say the rising stock market is giving an added boost to consumer spending through what is known as the “wealth effect.”

The wealth of the top 1% hit a record $44.6 trillion at the end of the fourth quarter, as an end-of-year stock rally lifted their portfolios, according to new data from the Federal Reserve.

The total net worth of the top 1%, defined by the Fed as those with wealth over $11 million, increased by $2 trillion in the fourth quarter. All of the gains came from their stock holdings. The value of corporate equities and mutual fund shares held by the top 1% surged to $19.7 trillion from $17.65 trillion the previous quarter.

While their real estate values went up slightly, the value of their privately held businesses declined, essentially canceling out all other gains outside of stocks.

    • Snot Flickerman@lemmy.blahaj.zoneEnglish
      101·
      7 months ago

      That’s a big ask for anyone, but especially for someone whose over 60.

      Interesting that you reference Bill Clinton, because he is actually on record on realizing some stuff he did was the wrong choice. Specifically the idea of treating food as commodities and not a human right. Not that that invalidates your point, just an interesting note.

      “Food is not a commodity like others,” Clinton said. “We should go back to a policy of maximum food self-sufficiency. It is crazy for us to think we can develop countries around the world without increasing their ability to feed themselves.”

      Clinton was 61 years old in 2008.

        • Snot Flickerman@lemmy.blahaj.zoneEnglish
          71·
          7 months ago

          Uhhh…

          The US drives how the world economy works, and literally bullies other countries into how it wants it to be. We exported “trickle down economics” and other bullshit ideas to the whole world, and Clinton’s Presidency had its hands in all of that. The reason we were able to export such policy is because it seemed like it was working domestically and worldwide, so the Clinton administration was driving a lot of what happened in worldwide economics as well as domestic economics because of the same cargo cult.

          I really was only pointing out that he managed to make statements about it after 60. I actually think it’s easier for these folks to admit it as they get older. See: every US Republican who turns around to criticize the party after they retire from politics.

    • ABCDE@lemmy.world
      71·
      7 months ago

      whose over 60.

      Who’s. Whose is for possessive, like: whose beer is this? It’s the guy whose car is outside.