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.

    • melpomenesclevage
      1·
      3 months ago

      But the KKK isn’t. Because…???

      And why are ‘states’ special exclusions where we use a different word?

      • ILikeBoobies@lemmy.ca
        11·
        3 months ago

        I already answered that the first time you said it

        Because when the states came up with the rules they decided to give them exclusions

        For states the general equivalent is war crime and the resolution is that the common person that belongs to the group isn’t punished as much as the leaders or people who commit those actions

        • melpomenesclevage
          1·
          3 months ago

          So the states came up with the special category of state and the rules about being states. That’s some crazy bootstrapping. Pure tautology. Does that mean you and I can be states?

          Also, lol, someone being punished for war crimes. Such an adorably twee concept.