During the early stages of recovery from the 2009 economic recession, several groups were left behind. This included ethnic and racial minorities as well as low-wage workers. However, it has emerged that the fruits of economic growth are catching up with these people. However, the biggest pattern where huge gains went to rich Americans continued. This has been the trend in the past few decades that have seen the gap between the poor and rich widen. A recent study concluded that the average net worth of an American family was $97, 300. This was a 13 percent increase from what these families earned in 2013. This information was released by the Federal Reserve Bond which also clarified that the gains happened to be broad-based. This means that they considered economic, educational and racial divides. This study has been going on since the recession keeping track of wealth and income of families affected most by the recession.
Rich men and wealth control
According to the study, the trend where most of the American wealth is controlled by few people continued. It was discovered that one percent of the American population controlled 38.6 percent of the American wealth. This was an improvement from 2013 when 36.3 percent of the American wealth was controlled by the one percent. It was also revealed that 22.8 percent of the American wealth was controlled by over 90 percent of Americans.
There are fears that inequality will be on the rise with the implementation of the new tax overhaul proposal by President Trump. The proposed bill will reduce the taxes that are levied on certain businesses and corporations. The new bill will also do away with the estate tax. For starters, all these are ventures that are owned by the rich. According to President Trump, he says that this is not a plan to reduce tax on the wealthy. However, most of his advisors think that this is not a good idea and could backfire. The recent economic rebound and strengths were detailed in data obtained from the Survey of Consumer Finances by the Federal Reserve. This is a survey that focuses on other issues other than the yearly income of Americans. Other issues that are touched by the report include overall net worth, debt and asset of individual families. The report suggests that the household median income is about to return to where it left before the recession. The reports also revealed that the effects of recession had declined by 40 percent from 2013.s