Home Business It's been almost 100 years since America's 1% had so much fortune

It's been almost 100 years since America's 1% had so much fortune

It is not fashionable to wear flapper dresses and wear the Charleston, but the diversity of 1920s fullness is definitely back in style.

Recent research shows that America's ultra-rich countries have not had as much of the nation's wealth since the jazz era as they did in times of release before the country's finances were destroyed.

"The concentration of wealth seems to have dropped to the level of the last 20s," wrote Gabriel Zucman, economics professor at the University of California, Berkeley.

Zucman said that all the research on this topic also points to high prosperity levels in China and Russia in recent decades. The same thing happens in France and the UK, but with a "more moderate increase," the newspaper said.

In 1929, before the collapse of Wall Street with the Great Depression, the share of the richest adults at 0.1% of total household wealth was close to 25%, according to Zucman's newspaper distributed by the National Bureau of Economic Research.

These prices dropped in the early thirties and continued to fall below 10% at the end of the 1970s. Since the beginning of the 1980s, rates have been recovering and are now close to 20%.

It has become especially difficult to measure the full extent of the wealth of those days. "Since the 1980s, a large offshore wealth management industry has evolved that makes it difficult to capture specific forms of assets (especially financial portfolios)," the paper added.

Do not miss: Most Americans who make $ 90,000 a year say they do not think they are rich

Other researchers have said that the Great Recession has increased income disparities. The income of top earners fell by 4% and the income of the lowest households by 20%.

The unemployment rate has dropped from the 10% unemployment rate in the Great Recession in 2009 to 4% in February – a low of 49% during the last 3.7% decline.

Yet millions of Americans live paycheck to paycheck; The recent partial shutdown of the federal government forced some workers to convert into food kitchens and made clear the lack of American savings.

The new study attempts to question the figures of F. Scott Fitzgerald that the rich are different.

However, it is not the next step to say whether stock market collapse is imminent. In fact, scholars have worked for decades to document and discuss all the causes of the Great Depression.

The paper is another focus on the question of income inequality, involving scientists, politicians, billionaires and even rating agencies. At the end of last year, Moody's said the growing wealth gaps could lead to a downgrade of the Bund rating.

Other researchers have also drawn parallels between the present and the past. The Economic Policy Institute, a left-leaning Washington DC think-tank, estimates that America's leader accounted for 22% of total national income at 1%. The organization said that in 1928, 23.9% of the country's income went to the top 1%.

Receive a daily summary of the top reads in your personal mailbox. Subscribe to the free MarketWatch Personal Finance Daily newsletter. Sign up here.



Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Must Read

Best web hosting resellers of 2019

Best web hosting resellersWebsite hosting is usually a service you'll just buy for your own use, but sometimes it pays to think bigger. If...

The Private Border: Enterprise explorers are poised to launch $ 1 billion in science

President Donald Trump has struggled with some of his signature promises, but now he has set his goals higher: a return to the moon,...

Mama should have the "most difficult operation in the world" with an organ transplant

Michelle Oddy hopes the operation will return her life (Image: Ferrari Press Agency)A desperate mother has been told she has a 40 percent chance...