Key Points

  • The wealth of the top 1% hit a record $44.6 trillion at the end of the fourth quarter.
  • All of the gains came from stock holdings thanks to an end-of-year rally.
  • Economists say the rising stock market is giving an added boost to consumer spending through what is known as the “wealth effect.”

The wealth of the top 1% hit a record $44.6 trillion at the end of the fourth quarter, as an end-of-year stock rally lifted their portfolios, according to new data from the Federal Reserve.

The total net worth of the top 1%, defined by the Fed as those with wealth over $11 million, increased by $2 trillion in the fourth quarter. All of the gains came from their stock holdings. The value of corporate equities and mutual fund shares held by the top 1% surged to $19.7 trillion from $17.65 trillion the previous quarter.

While their real estate values went up slightly, the value of their privately held businesses declined, essentially canceling out all other gains outside of stocks.

  • theotherverion@lemmynsfw.com
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    7 months ago

    You are right the scale is different, but essentially it is the same idea.

    Apart from many other issues this proposal has, limiting possible individuals’ achievements (just like socialistic regimes in the last century) is one of them

    • Flying Squid@lemmy.world
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      7 months ago

      It is in no way the same idea.

      Communism is about the workers controlling the means of production and distributing things according to people’s needs. This has zero to do with that.

      I mean it’s not a secret what communism is, so I don’t know why you don’t know what it is, but here-

      https://en.wikipedia.org/wiki/Communism

      Also, Karl Marx wrote extensively on the subject. Believe it or not, limiting upper income levels was not something he ever wrote about. Probably because that wouldn’t even be a thing in a communist society.

      • theotherverion@lemmynsfw.com
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        7 months ago

        Well yes, but you cannot achieve communism in one day. To get there, you firstly need socialism which is a direct path to communism.

        And the idea of limiting higher limit of income very much reminds this pattern.

          • theotherverion@lemmynsfw.com
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            7 months ago

            Even in socialist countries like Czechoslovakia you had income (a sign of capitalism) but it was purposefully limited, so no one earns too much. This is literally the same.

            • Flying Squid@lemmy.world
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              7 months ago

              It’s almost as if they weren’t actually socialist countries.

              Next you’ll be telling me that the elections in the Democratic People’s Republic of Korea are unfair, which is why we shouldn’t have democracy.

                • Flying Squid@lemmy.world
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                  7 months ago

                  I don’t know, maybe because just because a country calls itself something doesn’t mean it actually follows that ideology?

                  Believe it or not, the National Socialist German Workers’ Party were also not socialists.

                  But I do enjoy how you keep ignoring the actual definitions of these words and instead are going with what countries do.

                  • theotherverion@lemmynsfw.com
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                    7 months ago

                    Yes, that’s the unfortunate thing that many countries called their regimes not so correctly, hence why certain misunderstandings could happen.

                    What I meant was the regime in eastern Europe between 1948-1990s. In these countries (I live one of them), we refer to this regime when saying “socialism” despite the definition not being 100% exact, hence why I used this term. Sorry for misunderstanding. If you have a more exact name for this system, let me know.