- Dynastic wealth increases to 10 times the rate of the average American family’s wealth, per new IPS report.
- America’s 50 richest families – many of them richer than before the pandemic – are worth $ 1.2 trillion.
- The 65 million families in the bottom half of U.S. households share a combined wealth of $ 2.5 trillion.
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Dynastic wealth is growing – and it’s growing faster than the wealth of the average American family. Ten times faster, to be exact.
It is according to a new report from the Left Institute for Political Studies titled “Silver Spoon Oligarchs,” which examined the growing concentration of wealth in the United States. It revealed that America’s 50 richest billionaire families were together worth $ 1.2 trillion in 2020. Meanwhile, the estimated 65 million families that make up the bottom half of all American households share a combined total wealth. of $ 2.5 trillion.
The 27 families that were on both the Forbes List of $ 1 Billion Dynasties and the Forbes 400 List in 1983 saw their collective wealth increase by 1007%, from $ 80.2 billion to $ 903.2 billion. billion dollars in inflation-adjusted dollars, according to the report. This contrasts sharply with the growth in typical American family wealth from 1989 to 2019 (the most recent year available), at just 93% in inflation-adjusted dollars.
The wealth is even more concentrated at the tippy top. The five richest dynastic families – the Waltons, Kochs, Mars, Cargill-MacMillans and Lauders – have seen their wealth increase by 2,484% since 1983.
And many of those families saw their wealth increase exponentially during the pandemic, while the bottom half continued to struggle. This is proof of America’s K-shaped recovery, in which high-income Americans saw their jobs come back and their incomes increased while low-income Americans lost their jobs, struggled to pay the bills, and fell into misery.
Inequalities in the United States were already worsening before the pandemic. In 2018, he reached the highest level that’s since the U.S. census started tracking it 50 years ago. Some have cited dynastic wealth as a contributing factor, such as billionaire Warren Buffett, who called him “the enemy of meritocracy” back in 2007.
Josh Hoxie, director of the Opportunities and Taxation project at the Institute for Policy Studies, previously told Insider that “A lot of people don’t like to recognize the big advantage they get in things like buying a home or buying a home. avoid a large student debt because of generational wealth.
“It leads to big problems when other people who don’t have generational wealth look around and wonder why they are so far behind,” he continued. “The reality is that the best indicator of economic prosperity isn’t hard work or intelligence, it’s the family you were born into.”