|The Wealth Effect from rising stock prices is certainly real, but just who does it benefit?
81% of all shares are owned by the top 10% in the USA. So, we can say that they are the group which most benefits from the wealth being created when the government buys shares. Looking at the other way round, the bottom 90% of Americans own only 19% of shares. Indeed, the rich get richer on the back of government buying of shares in the stock market.
A majority of Americans—53% to be exact—own no stock whatsoever and do not benefit from the Wealth Effect created when the government buys shares in the stock market.
The Top 1% of Americans own 38% of all shares in the stock market. When the government buys shares, they are the biggest beneficiary of the government's largesse.
44% of all Americans have no retirement safety net at all and will depend upon government Social Security payments in retirement.
Tuesday, June 18, 2013
Who Benefits From a Rising Stock Market?
Posted by Unknown at 09:06