This week our focus is on the wealth gap in the US. The chart below, courtesy of Ben Hunt at Epsilon Theory
, shows where the money is. It compares the household wealth of the top 0.1% to that of the bottom 90%.
The turning point was after the 1987 Crash. Since then the wealth of the bottom 90% has fallen from over 35% to less than 24% today. In contrast, the wealth of the top 0.1% of the population (that's 326,000 people out of the total population of 326 million) has risen from less than 10% to nearly 25% of household wealth.
We can’t blame Donald Trump for that. Rather, actions by central banks have helped to push wealth into the hands of the wealthy. Quantitative easing after 2007/8 is just the most recent example of central banks driving stock markets higher benefitting the asset rich top 0.1%.
Solving this problem is a great challenge that leaders have so far failed to address in any meaningful way.