ZME Science
No Result
View All Result
ZME Science
No Result
View All Result
ZME Science

Home → Other → Economics

The US wealth gap hasn’t been this big since the “Roaring ’20s”

The "Roaring 20s" ended with the Great Depression. How will this decade end?

Mihai AndreibyMihai Andrei
April 9, 2019
in Economics
A A
Share on FacebookShare on TwitterSubmit to Reddit

The Roaring Twenties — a period also called the Jazz Age, the Age of Intolerance, and the Age of Wonderful Nonsense. Everything seemed possible with new technology, there was opportunity everywhere you looked, the sky was the limit. But, as the high-life 1920s society became more enamored of wealth and everyday luxuries, another unseen group of people grew in numbers: the poor. The roaring twenties also had roaring inequality — and we’re seeing the same trends in today’s society.

The wealth gap is increasing at an alarming rate. Image credits: Emmanuel Saez and Gabriel Zucman.

The rich get richer — a saying that never seems to lose its relevance — can accurately describe today’s America. According to a working paper by two leading economists, the 400 richest Americans (0.00025% of the population) own as many assets = as 150 million adults in the bottom 60% of the wealth distribution. Gabriel Zucman, one of the authors who has also supported a tax on the rich, concludes that “U.S. wealth concentration seems to have returned to levels last seen during the Roaring Twenties.”

When it comes to inequality, we’re more used to talking about the wage gap — but instead, this study focused on the wealth gap, which includes the entire assets held by a household. Since the 1980s, the wealth of the top 0.1% of people (who have over $20 million in assets) has substantially grown. The wealth of the top 0.01% has grown even more. However, for people below the 0.1%, there hasn’t been a big jump. It’s not just that the middle class is losing ground, but even the “middle rich” — the people who are in the top 10% but not in the top 1% — are losing ground. So it’s not that the rich get richer — it’s more like the very rich get much richer.

Image credits: Emmanuel Saez and Gabriel Zucman.

There’s also a disturbing racial component when it comes to the wealth gap: melanin seems to be inversely correlated to wealth. The mean wealth of black households is $138,200 and  $933,700 for white households.

Recent studies are likely to underestimate the level and rise of inequality, as financial globalization makes it increasingly hard to measure wealth at the top, researchers say. As a result, we are seeing wealth inequality resembling that of the 20s. While the economic factors are different compared to then, the concerns are very similar. It’s estimated that 1 in 3 Americans has no savings at all, and while profits are soaring for many industries, salaries are often stagnating.

There is no sign whatsoever that this trend will stop or reverse.

The Roaring Twenties ended with the Wall Street Crash of 1929 and were followed by the Great Depression — one of the most severe periods of economic hardships in modern history.

RelatedPosts

This ancient South American culture used ritual drugs to reinforce social hierarchy
How ‘Doughnut Economics’ could transform the planet post-COVID
Oxen, the ‘robots of the late Neolithic’ jump-started economic inequality
The United Nations has released its Human Development Index for 2014. European countries dominate again, the US is 28th
Tags: inequalitysocial inequalitywealth inequality

Share120TweetShare
Mihai Andrei

Mihai Andrei

Dr. Andrei Mihai is a geophysicist and founder of ZME Science. He has a Ph.D. in geophysics and archaeology and has completed courses from prestigious universities (with programs ranging from climate and astronomy to chemistry and geology). He is passionate about making research more accessible to everyone and communicating news and features to a broad audience.

Related Posts

Anthropology

This ancient South American culture used ritual drugs to reinforce social hierarchy

byMihai Andrei
2 months ago
Economics

Why Finland Is Still the Happiest Country in the World, While the U.S. Is At Its Lowest

byMihai Andrei
4 months ago
Economics

Poverty is on the decrease worldwide. Is it because of capitalism?

byMihai Andrei
1 year ago
News

Science may not be the meritocracy we thought it to be: gender and race discrepancies are prevalent

byPaula Ferreira
3 years ago

Recent news

Tennis May Add Nearly 10 Years to Your Life and Most People Are Ignoring It

July 4, 2025

Humans Have Been Reshaping Earth with Fire for at Least 50,000 Years

July 4, 2025

The Strangest Microbe Ever Found Straddles The Line Between Life and Non-Life

July 4, 2025
  • About
  • Advertise
  • Editorial Policy
  • Privacy Policy and Terms of Use
  • How we review products
  • Contact

© 2007-2025 ZME Science - Not exactly rocket science. All Rights Reserved.

No Result
View All Result
  • Science News
  • Environment
  • Health
  • Space
  • Future
  • Features
    • Natural Sciences
    • Physics
      • Matter and Energy
      • Quantum Mechanics
      • Thermodynamics
    • Chemistry
      • Periodic Table
      • Applied Chemistry
      • Materials
      • Physical Chemistry
    • Biology
      • Anatomy
      • Biochemistry
      • Ecology
      • Genetics
      • Microbiology
      • Plants and Fungi
    • Geology and Paleontology
      • Planet Earth
      • Earth Dynamics
      • Rocks and Minerals
      • Volcanoes
      • Dinosaurs
      • Fossils
    • Animals
      • Mammals
      • Birds
      • Fish
      • Amphibians
      • Reptiles
      • Invertebrates
      • Pets
      • Conservation
      • Animal facts
    • Climate and Weather
      • Climate change
      • Weather and atmosphere
    • Health
      • Drugs
      • Diseases and Conditions
      • Human Body
      • Mind and Brain
      • Food and Nutrition
      • Wellness
    • History and Humanities
      • Anthropology
      • Archaeology
      • History
      • Economics
      • People
      • Sociology
    • Space & Astronomy
      • The Solar System
      • Sun
      • The Moon
      • Planets
      • Asteroids, meteors & comets
      • Astronomy
      • Astrophysics
      • Cosmology
      • Exoplanets & Alien Life
      • Spaceflight and Exploration
    • Technology
      • Computer Science & IT
      • Engineering
      • Inventions
      • Sustainability
      • Renewable Energy
      • Green Living
    • Culture
    • Resources
  • Videos
  • Reviews
  • About Us
    • About
    • The Team
    • Advertise
    • Contribute
    • Editorial policy
    • Privacy Policy
    • Contact

© 2007-2025 ZME Science - Not exactly rocket science. All Rights Reserved.