The Wealth Gap

There is a lot of frus­tra­tion over what stuff cost these days. Not just gaso­line and gro­ceries, but schools and roads and libraies. A lot of this is because as the coun­try gets wealth­i­er, stuff tends to get more expen­sive. But so much of the new wealth goes to the already wealthy, the rest of us see our stan­dard of liv­ing falling in rela­tion to what is going on with the wealthy.

Here are some num­bers:

In 1989, the top 1% of house­holds held 16.87% of house­hold wealth. In 2025 the top 1% of house­holds held 22.47% of house­hold wealth.

Of course there are a larg­er num­ber of house­holds in the 1% in 2025 than in 1989. In 89, the aver­age top 1% house­hold had a net worth of $5,161,466.00. That’s in 1989 dol­lars. Infla­tion adjust­ed to 2025 dol­lars makes it $13,419,811.00. In 2025, the aver­age top 1% house­hold net worth was $41,419,262.00.

$41,419,262.00 — $13,419,811.00 = 27,999,451.00 extra dol­lars per house­hold in 2025.

In 2025, there were 134,790,000 house­holds in the US. So, the top 1% of house­holds would be 1,347,900 house­holds. Each of those, on aver­age, hold­ing that extra $27,999,451.00.

1,347,900 x $27,999,451.00 = $37,740,460,002,900.

That’s 37 3/​4 tril­lion dol­lars. The cur­rent nation­al debt is $39,344,600,000,000.

How has the top 1% accu­mu­lat­ed all this? Min­i­mum wage has not gone up. Tax­es on the very wealthy are min­i­mal. The wealthy have many easy loop­holes to use to avoid pay­ing tax­es. Most of us pay a high­er per­cent­age of our income in tax­es than the wealthy pay.

Every time you hear the call for dereg­u­la­tion, this is a call for more mon­ey for the wealthy and more of dirty air, dirty water, dirty earth, dan­ger­ous work­ing con­di­tions, or crap­py products….all of which are things that end up cost­ing the non-wealthy mon­ey.

Most of the above num­bers come from one of two links: https://fred.stlouisfed.org/release/tables?rid=453&eid=813668&od=#

https://fred.stlouisfed.org/series/WFRBLN40301

Num­ber of house­holds is from the cen­sus bureau and I used the infla­tion cal­cu­la­tor at https://www.usinflationcalculator.com

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