This is apropos of nothing in particular, but I felt like checking out annual increases in wealth for the top 1%. You can think of this as "extra" income, above and beyond what people spend, or as annual savings. Here it is:
The annual wealth increase of the top 1% has increased about 150% since 1990, on a trend basis. For those in the upper middle class it's increased 50%.
What about the big drop in 2022? How can you have an upward trendline with any confidence?
It looks like Kevin's chart doesn't stop at 2023, so if the end value is zero it looks like there is a drop when the source doesn't show one.
And the GOP response?
More tax cuts are in order! Biden is ruining the economy. The rich (our donors) deserve more for their efforts!
The top 1% only sees an average wealth increase of $600,000 a year? That seems low. Dont you need at least 10 million in net worth to get into the top 1%? I would have thought that between saving new money and growth of investments that they'd be getting better than 6% increases on average. Are a lot of them living from very big paycheck to very big paycheck?
Probably all of the 150% / 50% gap can be explained by changes to the tax treatment of equity-derived income: change the take-home share of dividends and capital gains from 70% to 85%, and at a first difference, stock values should rise more than 20%.
Then compound the greater return for 30 years.
And, by the way, rebalance the incentives of pocketing more money personally v. contributing to a generally better and more stable society.