So while the poor got poorer, the rich got even richer than that.
The survey showed other stark contrasts. While Black households saw their median income fall by 2% - versus a 3% rise for all families - their median net worth shot up by 60% to outpace all other racial and ethnic groups during those three years
The poor got richer
Despite Black families experiencing the largest growth in median net wealth — a 60% bump from 2019 — their 2022 levels remained the lowest among all other racial or ethnic groups, and they also saw incomes falter.
The 37% rise in net worth, which was more than double the next-largest upswing on record, was largely fueled by asset growth — specifically home values and stock market gains that far exceeded consumer price inflation, Fed researchers said.
Figured_ I would add a bit more context to your argument. You can’t gain in net wealth if you have nothing to gain with. Emphasis in above quote is mine.
So, basically what you see going on in this thread is Americans who are unable to square these statistics with their lives experience. I think the critical thing here is that net worth surged, and net worth is usually bound a lot more closely to illiquid assets like housing, stocks, etc. So while everyone’s living paycheck to paycheck, the stonks and real estate value that you can’t easily use to buy groceries are on a rip. Others here have pointed out that assets tend to remain pretty stable in value relative to inflation; that’s still true, and probably a big reason why the worth of those things has surged so much in the last few years.
So, tldr: people’s assets increased in value, largely driven by inflation, but that really isn’t helping anyone live better or more comfortably for the time being.
Other issues too… If everyone’s house is worth more, you’re not going to be able to afford to move any easier than you were before.
TL;DR: Rich people made a lot of money at everyone else’s expense.
Thank goodness for those billionaires keeping up that average!
Real, or inflation-adjusted, median net worth
Yes.
The median removes outlets like billionaires
That’s probably because house and vehicle values have inflated so much.
This is true. Assets like houses are somewhat immune to inflation. If prices go up 10%, houses will just go up 10% too.
