April 22, 2017
The Wealth Distribution
In the United States, wealth is highly concentrated in relatively few hands. As of 2013, the top 1% of households (the upper class) owned 36.7% of all privately held wealth, and the next 19% (the managerial, professional, and small business stratum) had 52.2%, which means that just 20% of the people owned a remarkable 89%, leaving only 11% of the wealth for the bottom 80% (wage and salary workers). In terms of financial wealth (total net worth minus the value of one’s home), the top 1% of households had an even greater share: 42.8%. Table 2 and Figure 1 present further details, drawn from the careful work of economist Edward N. Wolff at New York University (2017).
Table 2: Distribution of net worth and financial wealth in the United States, 1983-2013
| Total Net Worth | |||
| Top 1 percent | Next 19 percent | Bottom 80 percent | |
| 1983 | 33.8% | 47.5% | 18.7% |
| 1989 | 37.4% | 46.2% | 16.5% |
| 1992 | 37.2% | 46.6% | 16.2% |
| 1995 | 38.5% | 45.4% | 16.1% |
| 1998 | 38.1% | 45.3% | 16.6% |
| 2001 | 33.4% | 51.0% | 15.6% |
| 2004 | 34.3% | 50.3% | 15.3% |
| 2007 | 34.6% | 50.5% | 15.0% |
| 2010 | 35.1% | 53.5% | 11.4% |
| 2013 | 36.7% | 52.2% | 11.1% |
| Financial (Non-Home) Wealth | |||
| Top 1 percent | Next 19 percent | Bottom 80 percent | |
| 1983 | 42.9% | 48.4% | 8.7% |
| 1989 | 46.9% | 46.5% | 6.6% |
| 1992 | 45.6% | 46.7% | 7.7% |
| 1995 | 47.2% | 45.9% | 7.0% |
| 1998 | 47.3% | 43.6% | 9.1% |
| 2001 | 39.7% | 51.5% | 8.7% |
| 2004 | 42.2% | 50.3% | 7.5% |
| 2007 | 42.7% | 50.3% | 7.0% |
| 2010 | 41.3% | 53.5% | 5.2% |
| 2013 | 42.8% | 51.9% | 5.3% |
Total assets are defined as the sum of: (1) the gross value of owner-occupied housing; (2) other real estate owned by the household; (3) cash and demand deposits; (4) time and savings deposits, certificates of deposit, and money market accounts; (5) government bonds, corporate bonds, foreign bonds, and other financial securities; (6) the cash surrender value of life insurance plans; (7) the cash surrender value of pension plans, including IRAs, Keogh, and 401(k) plans; (8) corporate stock and mutual funds; (9) net equity in unincorporated businesses; and (10) equity in trust funds. Total liabilities are the sum of: (1) mortgage debt; (2) consumer debt, including auto loans; and (3) other debt. From Wolff (2017).
Figure 1: Net worth and financial wealth distribution in the U.S. in 2010
From Wolff (2017).
In terms of types of financial wealth, in 2013 the top one percent of households had 49.8% of all privately held stock, 54.7% of financial securities, and 62.8% of business equity. The top ten percent had 84% to 94% of stocks, bonds, trust funds, and business equity, and almost 80% of non-home real estate. Since financial wealth is what counts as far as the control of income-producing assets, we can say that just 10% of the people own the United States of America; see Table 3 for the details. The only category which is not skewed severely toward the upper class is debt.
Table 3: Wealth distribution by type of asset, 2013
| Investment Assets | |||
| Top 1 percent | Next 9 percent | Bottom 90 percent | |
| Business equity | 62.8% | 31.0% | 6.2% |
| Financial securities | 54.7% | 39.6% | 5.7% |
| Stocks and mutual funds | 49.8% | 41.2% | 9.1% |
| Trusts | 49.5% | 34.0% | 16.5% |
| Non-home real estate | 33.7% | 44.1% | 22.2% |
| TOTAL investment assets | 51.5% | 37.0% | 11.5% |