Business
US Household Wealth Touches Record High: Nearly $83 Trillion
CHRISTOPHER S. RUGABER, AP Economics Writer
WASHINGTON (AP) — Fueled by higher stock and home values, Americans’ net worth reached a record high in the final three months of 2014.
Household wealth rose 1.9 percent during the October-December quarter to nearly $83 trillion, the Federal Reserve said Thursday. Stock and mutual fund portfolios gained $742 billion, while the value of Americans’ homes rose $356 billion.
The typical household didn’t benefit much, though. Most of the wealth remains concentrated among richer families. The wealthiest 10 percent of U.S. households own about 80 percent of stocks.
Still, greater wealth could help lift spending and economic growth. Higher stock and home values can make people feel more financially secure and more willing to spend, and consumer spending fuels about 70 percent of the economy.
The Fed’s figures aren’t adjusted for population growth or inflation. Household wealth, or net worth, reflects the value of homes, stocks and other assets minus mortgages, credit cards and other debts
U.S. corporations are also seeing sharp improvements in their finances, the Fed report showed. Businesses amassed $2 trillion in cash by the end of last year— a record high — up from less than $1.9 trillion three months earlier.
Cash-rich corporations could spend more on investments in machinery, computers and other equipment. That would make workers more productive and accelerate economic growth.
They could also use some of their cash to raise pay at a time when many employees have been stuck with stagnant wages. Some economists have criticized publicly traded companies for spending heavily on repurchasing their own shares, which boosts profits and serves shareholders rather than employees.
Businesses are also taking advantage of low interest rates by taking on more debt, which typically signals confidence in the economy and future growth. Business debt rose 7.2 percent in the fourth quarter, the sharpest quarterly increase in more than six years.
During the Great Recession, which officially ended in June 2009, Americans’ net worth plummeted as stock and home values sank. Household wealth tumbled to $55 trillion in the first quarter of 2009 from a pre-recession peak of $67.9 trillion. Wealth didn’t surpass that peak until the third quarter of 2012.
Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Activism
Oakland Post: Week of March 20 – 26, 2024
The printed Weekly Edition of the Oakland Post: Week of March 20 – 26, 2024
To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.
Activism
Oakland Post: Week of March 13 – 19, 2024
The printed Weekly Edition of the Oakland Post: Week of March 13 – 19, 2024
To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.
Activism
Oakland Post: Week of March 6 – 12, 2024
The printed Weekly Edition of the Oakland Post: Week of March 6 – 12, 2024
To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.
-
Alameda County3 weeks ago
Michael P. Johnson Garners Major Support in Run for Alameda County Superior Court Judge
-
Activism4 weeks ago
Oakland Post: Week of February 28 – March 5, 2024
-
Antonio Ray Harvey3 weeks ago
Advocates Weigh in on Calif. Black Caucus Reparations Package
-
Activism3 weeks ago
Oakland Post: Week of March 6 – 12, 2024
-
Book Reviews3 weeks ago
Book Review: “Dear Black Girls: How to Be True to You” by A’Ja Wilson
-
Activism3 weeks ago
Who are the Alameda County District 4 Supervisor Candidates’ Top Campaign Contributors?
-
#NNPA BlackPress3 weeks ago
Rep. James Clyburn Steps Down from House Leadership
-
#NNPA BlackPress3 weeks ago
PRESS ROOM: The Allen Lewis Agency Named Ally Supplier Diversity: Supplier of the Year for 2024