Never Mind the 1%. Mini-Millionaires Are Where Wealth Is Growing Fastest. – WSJ

Last week the Federal Reserve revealed that last year the average net worth of American families topped $1 million for the first time, surging 42% from $749,000 in 2019. 

Of course, that average is skewed by a small number of billionaires and multimillionaires. Inflation meant real wealth didn t increase as much. And pandemic-era stimulus boosted asset values, perhaps beyond their fundamental values.

Yet it would be a mistake to therefore conclude that wealth gains are purely a phenomenon of the top 1% and flattered by inflation and asset bubbles.

First, even after inflation, real average wealth was up 23%, according to the Fed s Survey of Consumer Finances, conducted every three years. Second, while the level of median wealth was much lower than the average, it actually rose more than the average between 2019 and 2022 by 37%, adjusted for inflation to $193,000. That means wealth inequality actually narrowed.

Third, and perhaps most noteworthy, there really are a lot of true millionaires. About 16 million American families just over 12% have wealth exceeding $1 million, up from 9.8 million families in 2019. Nearly eight million families are multimillionaires, i.e., their wealth exceeds $2 million, up from 4.7 million.

via www.wsj.com

Meanwhile, my trip to the grocery store last night cost more than $100. I bought 2 bottles of wine ($17 and $15) and two gallons of milk, plus ingredients for one pasta dinner. >$100.