US household wealth hits record high, says Federal Reserve
The Federal Reserve reported Thursday that U.S. household wealth hit a record high of $ 141.7 trillion in the second quarter of 2021.
This was an increase of $ 5,000 billion from the first quarter of 2021, when US household wealth was around $ 136 trillion. Compared to the second quarter of 2021, at the start of the COVID-19 pandemic, The wealth of American households has jumped by $ 31 trillion.
According to At CNBC, a surge in real estate and stock values ââboosted US wealth – contributing $ 3.5 trillion and $ 1.2 trillion, respectively.
As wealth increases for some, the report also points to an increase in borrowing and debt.
Consumer credit in the United States grew at an annual rate of 8.6% in the second quarter of 2021, up from 3.6% from the first quarter, while consumer debt grew at an annual rate of 7 , 9% in the second quarter, against 6.7% in the first quarter. first quarter.
The government also borrowed more, registering a 9.6% increase, the largest since launching a stimulus program as the pandemic hit hard in the second quarter of 2020.
The data comes as several federal financial aid and unemployment benefits ran out earlier this year, including a weekly supplement of $ 300 provided through Federal Pandemic Unemployment Compensation (FPUC).
The United States has not seen the kind of job growth economists expected after the rollout of vaccination in the country. In August, only 235,000 new jobs were added to the economy, below the 750,000 jobs expected by economists, which was blamed in part on the spread of the Delta variant and cases of COVID-19.
Much of the wealth accumulated in the United States since the start of the pandemic has gone to the wealthier parts of society.
Between March 2020 and April 2021, the combined wealth of American billionaires increased by $ 1.6 trillion, a 55% increase, according to only one analysis.
However, the total wealth of the poorest 50 percent may have increased slightly compared to the richest 1 percent. According to Bloomberg, the total wealth of the bottom half in the first quarter of 2020 was 6.3% of that of the top 1%, up from 5.8% at the end of 2019.