Inequality

Wealth Held by Bottom 50%

Share of total net worth held by the bottom 50% of households

Bottom 50% Wealth Share

Key events

Common Claim

“Half of Americans have been left with nothing as fiat money inflated assets they don't own.”

What the Data Shows

The bottom 50% held about 3.6% of total net worth in 1989 (when tracking began), fell to negative territory during the financial crisis, and recovered to ~2.5% by 2024. The bottom half's wealth is concentrated in housing equity, making them vulnerable to housing market crashes.

Perspectives

skeptic

Wealth concentration reflects stock ownership patterns and asset type, not monetary policy

This is fundamentally about asset allocation, not monetary systems. The bottom 50% would have almost no stocks under any monetary regime. The real policy levers are: expanding homeownership, reducing debt burdens, creating paths to stock ownership (like universal savings accounts).

neutral

Asset inflation widened the wealth gap, with monetary policy as a key enabler

This is one of the more compelling charts for the monetary policy critique. QE and low rates genuinely inflated financial assets owned by the wealthy while doing little for the bottom 50%. The bottom half's wealth is almost entirely in housing equity, making them extremely vulnerable to crashes.

believer

Fiat money systematically transfers wealth from the bottom to the top

The Cantillon effect in its purest form: new money enters through financial markets and banks, inflating assets held by the already-wealthy. By the time it reaches ordinary workers through wages, prices have already risen. The bottom 50% are running on a treadmill that speeds up every time the Fed prints money.

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neutral

Asset inflation widened the wealth gap, with monetary policy as a key enabler

The wealth gap results from concentrated asset ownership, housing vulnerability, debt burdens, and stagnant wages — all amplified by monetary policies that inflated financial assets.

Causal Factors

Concentrated stock ownership

30%

The top 10% own 87% of all stocks. As financial assets appreciated enormously, the bottom 50% — who hold almost no stocks — were left behind.

Federal Reserve DFA

Housing as sole wealth vehicle for lower half

25%

Home equity is the primary (often only) wealth asset for the bottom 50%. Housing crashes wipe out their wealth entirely while stock crashes barely affect them.

Survey of Consumer Finances

Student debt & consumer debt

20%

Rising debt burdens reduce net worth. The bottom 50% carry proportionally more debt relative to assets, and student loans grew from $260B to $1.77T in 20 years.

NY Fed

Stagnating wages at the bottom

15%

Real wages for bottom-quartile workers barely grew from 1979-2019, leaving little income for saving and wealth building.

Economic Policy Institute

Intergenerational wealth transfers

10%

Wealth begets wealth through inheritance, educational advantages, and better investment access. The bottom 50% rarely receive significant inheritances.

Federal Reserve