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.

  • dragontamer@lemmy.worldEnglish
    1·
    8 months ago

    I’m absolutely for right-to-repair laws. I don’t think patents are full evil, but they absolutely need reform. Copyrights should likely be weakened as well.

    So I don’t know about “abolishing intellectual property”, but I can meet in the middle: I can agree that patents have become stupid as the patent office no longer can keep up with the pace of inventions and fairly evaluate who is, or isn’t, deserving of patents. Reforming our country to this new reality (ie: that patents are unfairly, and inconsistently applied) is absolutely required.