Data from the Federal Reserve, which was released on Wednesday, said that American families were lucky to see a jump in their wealth between 2019 and 2022. What is interesting is the fact that those years were pandemic years, when the whole world saw the economic crisis together with enormous damage in life. Contributing factors to this wealth are recurring rounds of government incentives.
Over that three-year span, the median net worth jumped to 37 percent after inflation, according to the Fed’s Survey of Consumer Finances. It is believed to be the largest jump on record starting in 1989. Between 2018 and 2021, the median net worth jumped to over 3 percent, after subtracting price growth.
It should be noted that income gains are expressed for the affluent class. However, the data also show that Americans were successful in making financial progress in all three years. During this period, savings increased and credit card balances decreased.
Data obtained from private and public sector sources indicate such gains. The Fed’s report, however, spoke of a global standard for data on household financial conditions. The Fed’s report is published every three years and provides the most detailed and comprehensive look at everything from savings to stock ownership by age, wealth and racial group.
Since the pandemic shook the world, this is the first Fed report since then. The report shows how families thrived at a time when the entire world was facing difficult economic times. During the pandemic, masses lost their jobs, but the government offered various relief packages.
Recently, there has been a boom in the labor market. Rapid wage growth and low unemployment levels have made the situation better. However, rapid inflation reduced some of that gain.
Categories: Trends
Source: HIS Education