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.

  • melpomenesclevage@lemm.ee
    1·
    9 months ago

    Youre not addressing my main point here. I have actual human beings who are addicted to one thing that used the topic of discussion once and found it way too familiar, but can use most other drugs relatively safely.

    When talking about drugs and what we use them for, governments and societies are not irrelevant.

    • force@lemmy.world
      21·
      9 months ago

      Affinity for other drugs is very subjective and differs a lot between people who have SUDs and people who don’t have SUDs. People who have experienced addiction to one drug will almost always be drawn to other drugs which are relatively similar, even if they’re not very comparable in practice. People who have been addicted to hallucinogenic drugs before are significantly more likely to develop an addiction to weed, for example.

      They’re very different drugs but they both have stimulant effects. A recovering meth addict would likely have an extremely strong reaction to other very different stimulants, like cocaine. It does not necessarily make them all that comparable in practice.

      • melpomenesclevage@lemm.ee
        2·
        9 months ago

        I’m not talking about hypotheticals. I’m talking about actual living people I have known. Some of whom do a wider variety of drugs than me.

        I don’t know why youre even arguing this so passionately. I don’t actually care if it is. If your mental health requires you inject LSD into your genitals, I really don’t care unless youre willing to share your hookup, or youre cute enough for me to want to watch.