- cross-posted to:
- aboringdystopia
- cross-posted to:
- aboringdystopia
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.
Yes.
Also, if you are worth $100 million, you can literally afford the most expensive cars ever made and still be a multimillionaire.
Now, please explain why anyone in this world needs a $30 million car and why it would be a hardship for someone who would still have $70 million after buying it.
Because those cars bring new technology to the world.
They are vehicles for innovation.
They inspire people involved in making that car to be better at their jobs, to push the envelope.
Wealth does not trickle down, but technology does.
And if you want to put a legal limit on innovation and invention, thats an issue.
What innovation did that $30 million car bring to the world? Please explain specifically what technology trickled down.
And you still haven’t explained why it would be a hardship for someone with $100 million to spend $30 million of it on a car. Please explain that too.
One off the top of my head, the passing material science down from race cars into production quantities (albeit low but then into bmw and benz, then into sport models etc.) benefits to average drivers. More specifically, brake pads. Thier effectiveness and durability are so much better than 30 years ago. save lives all the time, and everyone is driving much faster and braking later.
I never spoke up on individual wealth and/or income. Pro UBI in fact. But you still need to incentivize learning, innovation, and development somehow. And right now we use money for that mostly. Or stock options, crypto, etc. Drugs, sex, power, indulgences have also been used historically.
My thrust is that limiting intellectual advancement is stupid.
I asked about that specific car. You didn’t answer me.