The wealth gap in the United States isn’t just wide—it’s a chasm. The top 1 percent, about 1.3 million households, hold $52 trillion in net worth. The bottom 50 percent, 66 million households, scrape together just $4 trillion.
The latest data from the FED shows this canyon, not a gap, within the society. Put differently, the richest sliver of society owns thirteen times more than half the country combined. And this isn’t just a quirky statistic for economists to debate on panels. It’s a live grenade in the middle of American society.
The Rent Trap
So how does inequality actually play out? Look no further than rent. Median rents rose 5.8 percent last year, while renter incomes crept up just 5.3 percent, CBPP data shows. That might sound close enough, but if you stretch it over a few decades, it can grow to outstanding proportions.
Since 2001, rents have increased by 26.7 percent (inflation-adjusted), while renter incomes have risen by a paltry 7.7 percent.
Who wins? The asset owners. If you own property or a REIT, you’re cashing those rent checks. If you don’t, you’re writing them—and watching a bigger share of your paycheck disappear every year. Nearly a quarter of renter households now spend over half their income on rent. That’s 12.1 million households chained to their …