By 2020, there would be an additional $1.5 trillion in wealth held in the United States, according to a new study by the Institute for Policy Studies, which focuses on the economics of inequality.
That’s because the median wealth of Americans has grown over the last 50 years by $16,000 per year, according a report released Monday by the institute.
The rise in inequality comes as the middle class has stagnated and wealth has stagnate. “
We’re going to have more wealth inequality and more income inequality than ever before.”
The rise in inequality comes as the middle class has stagnated and wealth has stagnate.
According to a 2016 report by the Center for Economic and Policy Research, the share of household wealth held by the top 10 percent of households fell from 20 percent in 1978 to 14 percent in 2016.
The new study says that in 2020, the wealthiest 20 percent of Americans own more wealth than the poorest 20 percent.
This is the same proportion as in 2016, the report said.
In 2020, more than half of the US population was in the top 1 percent.
“We’re seeing inequality grow exponentially at the top of the distribution,” Wehner said.
At the same time, wealth inequality is shrinking.
In the United Kingdom, where the average wealth of a typical household has grown from $2.1 million in 1980 to $3.4 million in 2016 to $5.4 billion in 2020 (and the median family income from $52,200 to $65,200), the share holding the majority of the wealth has dropped from 35 percent in 1980, to 25 percent in 2020 and then to 21 percent in 2022.
In contrast, in the U.S., where the median household wealth was $59,000 in 1980 and has risen from $68,000 to $88,000 today, the wealth share for the richest 10 percent has fallen from 40 percent in the 1980s to just 18 percent today.
“That’s a real shift in inequality,” Weaker said.
“If we keep going this way, it won’t stop.
We’re going back to where it was in 1970, where you had the same wealth distribution as in 1975.”
The institute’s analysis also found that if the top 5 percent of the population owned 40 percent of wealth, they would now own about $2 trillion, up from about $1 trillion today.
Wehner called that “a very, very dangerous scenario” for a nation with such high levels of inequality, noting that the wealthiest 5 percent now own over 60 percent of total wealth.
According to the new report, if we continue on this path, we’ll see income inequality grow by another 20 percent over the next 25 years, and wealth inequality will rise from 30 percent today to 60 percent by 2060.
This isn’t the first time Wehner has warned of rising inequality.
In February, he told CNBC that if current trends continue, the United State would be “in the same place as the early 20th century.”
“If we stay on the current path of inequality,” he said at the time, “the gap between the rich and everyone else is going to grow exponentially.”
This article originally appeared on CNBC.