Gee whiz, what a surprise
Image by Clker-Free-Vector-Images from Pixabay
The wealth of the 1% just hit a record $44 trillion
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.”
-https://www.cnbc.com/2024/03/28/wealth-of-the-1percent-hits-a-record-44-trillion.html
The rich folk got richer. Wow. What a surprise, ha ha.
“Those households in the top one-third of the income distribution and who own the bulk of the stock holdings account for approximately two-thirds of consumer spending,” Zandi said.
With the S&P 500 already up 10% this year, it is likely that the wealth of the upper echelon has already topped the record at the end of 2023. While inequality declined slightly in 2021 and 2022, as wages increased and housing prices surged, the wealth gap has since crept back to pre-pandemic levels.
The top 1% accounted for 30% of the nation’s wealth at the end of the fourth quarter, while the top 10% accounted for 67% of all wealth.
-CNBC, Ibid. emphasis mine
That's because people outside of the top 1/3 are tapped out. As I've warned before: you can't run an economic engine on consumption alone. Something's gonna give.
The US economy is based on consumption rather than production. So what happens when the consumer can't consume? Will hiking interest rates to the moon really solve the problem?
"The idea there being that, instead of always focusing on consumption, we need to be producing something, too. This is why I say who somebody is having consensual sex with, what they eat for lunch, what kind of exercise they take - that's not important to me. Someone's policies, however, matter a great deal, and we're still living with the ramifications of all that a decades later. Oh Sara, you're just some kind of Kennedy apologist. Call me that if you want to. I'm just pointing out that the chickens have come home to roost. How are you going to drive an economic engine that's like 70% based on consumption when the consumer can't consume any more - when they're in debt up to their freakin' eyeballs? Think about it."
-"The economy 'doesn't add up' on purpose!" https://www.buzzsprout.com/1125110/14704980
Going on this constant yo-yo cycle of inflation/recession, boom/bust, QE/QT, etc., is like yo-yo dieting: losing some weight and then gaining it back with more. It never solves the underlying problems of rampant Crony Capitalism, a rigged system, and an economy based on debt and consumption rather than manufacturing and production.
-https://consaracytheories.com/f/turkish-inflation-the-praise-of-paul-volcker
The WEF has already predicted a trillionaire within a decade, which I think is a long projection. It'll probably happen much sooner, especially at this pace.
This wealth gets squeezed upward like a tube of toothpaste and it doesn't happen on accident.
The economy doesn't add up for the poor and the middle class. It adds up very f**king well for the fat cats at the top.
-https://causeyconsultingllc.com/2024/03/24/actually-it-makes-perfect-sense/
This content was published concurrently at https://causeyconsultingllc.com/2024/04/03/gee-whiz-what-a-surprise/ on April 3, 2024.