Skip to content
Search AI Powered

Latest Stories

New Study Reveals Just How Much The 400 Richest Americans Own Compared To The Nation's Poorest

New Study Reveals Just How Much The 400 Richest Americans Own Compared To The Nation's Poorest
Andrew Lichtenstein/Corbis via Getty Images // @Stevers0331 (Twitter)

EAT THE RICH.

You might want to once you hear just how rich they are.


According to a working paper by University of California at Berkeley, economist Gabriel Zucman, the 400 richest Americans (that's just .00025 percent of the population, by the way) own more than the 150 million adults in the bottom 60 percent.

Here's what Zucman's abstract on "Global Wealth Inequality" had to say:

Both surveys and tax data show that wealth inequality has increased dramatically since the 1980s, with a top 1% wealth share around 40% in 2016 vs. 25–30% in the 1980s. Second, I discuss the fast growing literature on wealth inequality across the world. Evidence points towards a rise in global wealth concentration: for China, Europe, and the United States combined, the top 1% wealth share has increased from 28% in 1980 to 33% today, while the bottom 75% share hovered around 10%. Recent studies, however, may under-estimate the level and rise of inequality, as financial globalization makes it increasingly hard to measure wealth at the top. I discuss how new data sources (leaks from financial institutions, tax amnesties, and macroeconomic statistics of tax havens) can be leveraged to better capture the wealth of the rich.

Even more sobering news: The share of the nation's wealth by the bottom 60 percent dropped from 5.7 percent in 1987 to 2.1 percent in 2014, according to information from the World Inequality Database that Zucman and other economists maintain.

"U.S. wealth concentration has followed a marked U-shaped evolution of the last century," Zucman writes, noting:

It was high in the 1910s and 1920s, with a particularly fast increase in the second half of the 1920s. The top 0.1% wealth share peaked at close to 25% in 1929. It then fell abruptly in the early 1930s (in the context of the Great Depression) and continued to fall gradually from the late 1930s to the late 1940s (in the context of the New Deal and the war economy). After a period of remarkable stability in the 1950s and 1960s, the top 0.1% wealth share reached its low-water mark in the 1970s, and since the early 1980s it has been gradually rising to close to 20% in recent years. U.S. wealth concentration seems to have returned to levels last seen during the Roaring Twenties.

Zucman's paper comes as support for a proposal from Senator Elizabeth Warren (D-MA) to raise taxes on the super wealthy continues to gain traction.

According to a recent poll from Morning Consult, the vast majority of Americans support a wealth tax by a 60-21 margin, a number that includes majority support from Republican voters. Americans also support raising the marginal tax rate back up to 70 percent, as Representative Alexandria Ocasio-Cortez (D-NY) has suggested.

Such news has only galvanized people who'd like to see wealth inequality actually be addressed.




Warren herself posted the results of the Morning Consult poll after former Starbucks CEO and billionaire Howard Schultz dismissed her wealth tax proposal as "ridiculous."

"Dear Howard Schultz: if you're looking for bold ideas with broad bipartisan appeal for your 'centrist' presidential campaign, may I suggest my #UltramillionaireTax?" she tweeted, noting how the tax would provide avenues for such initiatives as student debt relief and health care.

Americans "don't want to replace a self-absorbed billionaire President with another one," she said. "Americans want real change. We should listen."



Ocasio-Cortez, meanwhile, has suggested going back to a marginal tax rate of 70 percent on income over $10 million, which she says her critics have mischaracterized as a tax on all income.

"You look at our tax rates back in the sixties and when you have a progressive tax rate system, your tax rate, let's say from zero to $75,000, maybe 10 percent or 15 percent, etc," she said during an interview last month. "But once you get to the tippy-tops — on your 10 millionth dollar — sometimes you see tax rates as high as 60 or 70 percent. That doesn't mean all $10 million are taxed at an extremely high rate, but it means that as you climb up this ladder, you should be contributing more."

More from News

Ryan Gosling; Jake Hamilton
Jake's Takes/YouTube

Ryan Gosling's Reaction To Being Interviewed By Journalist Who Is Stranded In The Desert Is All Of Us

Celebrities get interviewed from all kinds of places, but the side of the road in a desert? That's not typically one of them.

But for a recent sit-down with Ryan Gosling, that's exactly where Good Day Chicago reporter Jake Hamilton ended up asking his questions. From the side of the road, no less.

Keep ReadingShow less
Screenshots of Sheldon Whitehouse and Kristi Noem
PBS News

Kristi Noem Blasted For Trying To Play Dumb After Being Shown Photos Of Bedroom On Her Luxury Jet

Homeland Security Secretary Kristi Noem was called out after appearing dumbfounded this week after Rhode Island Democratic Senator Sheldon Whitehouse grilled her about her use of a luxury jet by showing her images of its bedroom.

On Monday, Noem testified before the Senate Judiciary Committee about the DHS recent funding lapse. Last month, reports surfaced that Noem’s department had sought approval from the Office of Management and Budget to purchase a luxury Boeing 737 Max 8.

Keep ReadingShow less
Screenshot of Hillary Clinton; Donald Trump
@GOPoversight/X; Kay Nietfeld/Picture Alliance via Getty Images

Hillary Clinton Was Asked If Trump Should Be Deposed About Epstein—And Her Blistering Response Is Spot On

Former Secretary of State Hillary Clinton gave a blistering response during her deposition in the House Oversight Committee's Epstein investigation when asked about whether or not she thinks President Donald Trump should also be deposed.

Clinton and her husband, former President Bill Clinton, testified separately behind closed doors last week before the House Oversight Committee regarding their connections to Jeffrey Epstein, the late financier, pedophile, and sex trafficker. Video recordings of the depositions were released by the committee on Monday.

Keep ReadingShow less
screenshots of friendly fire incident with US F-15 over Kuwait
@CNN/Instagram

Video Of Kuwaiti Locals Rushing To Help American Pilot Shot Down In Friendly Fire Incident Goes Viral

Video of Kuwaitis hurrying to check on the condition of a United States Air Force pilot who ejected from an F-15 fighter jet went viral online.

It has been reported by United States Central Command (CENTCOM) that three U.S. military jets were accidentally shot down over Kuwait as a result of "an apparent friendly fire incident" by Kuwaiti air defenses. Initial reports attributed the crashes to Iranian military forces.

Keep ReadingShow less
Donald Trump
Saul Loeb/AFP via Getty Images

Trump Was Spotted With A Huge Rash On His Neck—And Nobody Is Buying The Explanation

President Donald Trump's health and fitness are once again in the spotlight after he was spotted with a red rash on his neck to go along with the bruises on his hands—and the White House physician's explanation for the matter isn't satisfying anyone.

A reddish mark could be seen on Trump's neck during a Medal of Honor ceremony on Monday, extending above his shirt collar and ending just beneath his ear.

Keep ReadingShow less