85% of stock market wealth is owned by 10% of Americans.
Source: NBER working paper no 24,085. Household Wealth Trends in the United States, 1962 to 2016: Has Middle Class Wealth Recovered?
nber.org/papers/w24085?…
nber.org/papers/w24085?…
Also, I'm not saying that a stock market boom isn't good. It definitely is. But a stock market boom doesn't necessarily mean the entire population is benefiting equally or even at all.
Also, there’s clear evidence of a stock market wealth effect. See NBER working paper 25,959 - Stock Market Wealth and the Real Economy: A Local Labor Market Approach.
The key point is, this effect is highly localized and benefits certain people and locations disproportionately.
The key point is, this effect is highly localized and benefits certain people and locations disproportionately.
Sorry to be political. It's an interesting topic though.
The stock market, IMO, does not have strong wealth effects. Most people don't fund consumption out of their stock market PRINCIPAL appreciation.
The stock market, IMO, does not have strong wealth effects. Most people don't fund consumption out of their stock market PRINCIPAL appreciation.
The more interesting wealth effect, IMO, has always been housing where the equity is more evenly distributed across the country and people actually do tend to use their house equity as a consumption funding tool.
See NBER Working Paper No. 17740 The Housing Wealth Effect
See NBER Working Paper No. 17740 The Housing Wealth Effect
