The poorer 50% of the American population has seen its wealth double since the first quarter of 2020, a net worth never seen before in the country’s history.
In 1989, the poorer 50% had a combined net worth of $1.7 trillion. Around the turn of the century, it reached $2.3 trillion. Today, it is over $4 trillion.
This boost in net worth is due partly to an increase in housing equity, but also to the financial support offered to the poorer population through the 2020 CARES Act, the expanded unemployment benefits, and the 2021 Child Tax Credit. Low unemployment and increased worker leverage must be considered as well.