COVID-19 Increased Wealth Inequality
Bottom 90% Stock Value Rose 33%
While Top 10% Surged 43%
[Asia Economy Reporter Kwon Jae-hee] It has been revealed that the top 10% of wealthy individuals in the United States own nearly 90% of all U.S. stocks.
On the 18th (local time), CNBC reported, citing the latest data from the U.S. Federal Reserve (Fed), that as of the second quarter of this year, the top 10% of wealthy Americans owned 89% of stocks. This is the largest scale ever recorded.
CNBC analyzed, "This is clear evidence that the COVID-19 pandemic has increased wealth inequality."
From January last year to June this year, the value of stocks held by the top 10% of Americans surged by 43%, exceeding by 10 percentage points the 33% increase in stock value held by the bottom 90% of Americans during the same period.
Young individual investors who entered the stock market after the COVID-19 pandemic often purchased stocks at relatively higher prices than the wealthy.
Additionally, CNBC pointed out that 'ants'?individual investors who invested with loans?frequently bought and sold stocks to realize profits in a short period, resulting in relatively lower returns.
When narrowed down to the top 1% of wealthy individuals, the wealth gap in the U.S. becomes even more pronounced.
According to Fed statistics, as of the second quarter, the total assets of the top 1% of wealthy individuals accounted for 32% of the total U.S. assets, also setting a record high.
Over the past year and a half, the assets held by the top 1% in stocks and mutual funds amounted to $6.5 trillion (approximately 7,719 trillion won), greatly surpassing the asset increase of about $1.2 trillion among the bottom 90% of Americans during the same period.
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