Current Events > The Federal Reserve says the average American household is now a millionaire

(+) Yeah! (+)

https://finance.yahoo.com/news/standard-american-household-now-millionaire-104639340.html

It may be hard to believe it while money is so tight amid the cost of living crisis, but the average American household has achieved millionaire status. To be precise, the mean net worth of an American household, adjusted for inflation, was $1.06 million in 2022, according to the Federal Reserve's consumer finance survey. In comparison, in 2019 the mean net worth of an average household was $868,000, marking a 23% jump. Despite the economic challenges brought about by the pandemic and then war in Ukraine, the average household was significantly better off last year than before the pandemic. Even when looking at the mediananother measure of the average, which represents the midpoint in the ranking and is less likely to be skewed by exceptionally high or low numbersthe typical American household was worth $192,900.

Although that figure is less exciting for aspirational workers, it still represents an impressive after-inflation gain of 37% over three years. The mean is substantially higher than the median because it is boosted by the top 10% of earners, who have a net worth, on average, of $6.63 million, according to the Fed. Meanwhile, households in the bottom 10% had a mean net worth of $5,300 in 2022. Mean net worth is calculated by adding up the net worths of all American households and then dividing by the number of households. The research highlights the importance of getting on the property ladder if you want to build wealth. Nearly two out of every three American families were homeowners last year, reflecting a slight increase from the previous three yearsand as the housing market boomed during the pandemic, so did the pockets of property owners.

Excuse me, Dr. Evil... a million dollars isn't worth what it used to.

uh huh

Even when looking at the mediananother measure of the average, which represents the midpoint in the ranking and is less likely to be skewed by exceptionally high or low numbersthe typical American household was worth $192,900.

This is why the median is a more important figure here.

Averages are meaningless when we have such vast inqeuality and the vast majority of that wealth is tied up in non liquid sources with high maintenece cost to own(cars and homes.

For Example Elon Musk's wealth is ~225 billion. More then 200,000 people with a net worth of ZERO could be grouped with him and still the average of that group would be over a million.

In fact, I am (family of 3).

Well, if you count my game collection, then as of this week yeah I guess

1337toothbrush posted...

This is why the median is a more important figure here.

Yeah this is borderline fake news, really misleading number when its that different from the median

tankboy posted...

In fact, I am (family of 3).

Prove it, post one of your debit card numbers

Median values
https://www.federalreserve.gov/econres/scf/dataviz/scf/chart/#range:1989,2022;series:Retirement_Accounts;demographic:agecl;population:all;units:have

Median household networth in 2022 was $193k

The median American household has around $8000 in liquid cash, in addition to whatever other assets they hold.
https://gamefaqs.gamespot.com/a/forum/a/ac32f400.jpg

.

MICHALECOLE posted...

Prove it, post one of your debit card numbers

It's net worth, not single checking account balance, so it's not like that would help, anyway.

emblem-man posted...

Median values
https://www.federalreserve.gov/econres/scf/dataviz/scf/chart/#range:1989,2022;series:Retirement_Accounts;demographic:agecl;population:all;units:have

Median household networth in 2022 was $193k

The median American household has around $8000 in liquid cash, in addition to whatever other assets they hold.
https://gamefaqs.gamespot.com/a/forum/a/ac32f400.jpg

So the feds do make decimal errors too.

Takuya_Lee posted...

So the feds do make decimal errors too.

What decimal error?

Average is $1.06 million

Median is $192,000

And since it is regarding US households, this doesnt factor in the homeless.

https://www.morningstar.com/news/marketwatch/20231021260/are-you-in-an-average-american-family-then-youre-a-millionaire

Unsuprised_Pika posted...

-Demolish things like graveyards

This sounds like a logistical nightmare.

emblem-man posted...

What decimal error?

The net worth. Somehow turning 193k into a million.

Takuya_Lee posted...

The net worth. Somehow turning 193k into a million.

The a mean is over $1 million. The median is like a tenth of that

The median should be much closer to the mean than it is...

Carljank posted...

The median should be much closer to the mean than it is...

Why, the average is skewed by people who make billions a year?

More people are clustered under every roof. Even people with big salaries dont get to live the way they should be able to. Also, Im flat out calling bullshit on that

I refuse to believe this, there has to be some kind of mistake

This is not 1970.

does this count homeless people?

Takuya_Lee posted...

The net worth. Somehow turning 193k into a million.

Median and average

[LFAQs-redacted-quote]


The US is a very rich country despite all the gloom and doom you hear

Multibillionaires owning homes tends to throw off the average.

emblem-man posted...

The US is a very rich country despite all the gloom and doom you hear

The country is rich only if you count the total of all riches. Most people in the US are poor, which is why the mean is so far up from the median. Billionaires existing doesn't get rid of the gloom and doom, in fact they're the cause of it.

Yep just like inflation is transitory, people still believe in the crap they spew.

Raikuro posted...

Multibillionaires owning homes tends to throw off the average.

Depends on how many there are. In the US alone probably less than 1k? I assume. Not anywhere near enough to skewer the data.

emblem-man posted...

The US is a very rich country despite all the gloom and doom you hear

For the select few

key word: average

what they're really saying is that the richest are richer than they've ever been relative to the rest of the population, nominally speaking anyway

1337toothbrush posted...

Most people in the US are poor,

No, they aren't. But I guess I'd have to ask what for definition of poor is

emblem-man posted...

No, they aren't. But I guess I'd have to ask what for definition of poor is

https://www.cnbc.com/2023/10/31/62percent-of-americans-still-live-paycheck-to-paycheck-amid-inflation.html

1337toothbrush posted...

https://www.cnbc.com/2023/10/31/62percent-of-americans-still-live-paycheck-to-paycheck-amid-inflation.html

I hate that paycheck to paycheck stat. So meaningless.
Median America has 8k in a checking or savings account. That's not paycheck to paycheck

https://gamefaqs.gamespot.com/a/forum/a/ac32f400.jpg

Broken out by age

https://gamefaqs.gamespot.com/a/forum/f/ff223c33.jpg

Til wealth inequality is a massive problem that is growing exponentially out of control

emblem-man posted...

I hate that paycheck to paycheck stat. So meaningless.
Median America has 8k in a checking or savings account. That's not paycheck to paycheck

https://gamefaqs.gamespot.com/a/forum/a/ac32f400.jpg

Broken out by age

https://gamefaqs.gamespot.com/a/forum/f/ff223c33.jpg

To be clear, I'm not saying people are not poor or that they don't have issues.
I'm saying that paycheck to paycheck stat means nothing.
And also that the median America is not poor

I like how people have hijacked this topic to flex on how much they think they have

Unsuprised_Pika posted...

-Loosen many zoning laws

This is disagree with. Not across the board.

There are reasons we have zoning laws, and I wouldn't mind seeing better and more restrictive zoning laws that better allow "walking cities" and less suburban sprawl.

Loosening zoning laws will lead to unscrupulous developers cramming building projects into inadequately zoned areas and making taxpayers and home owners foot the long term costs.

Torgo posted...

This is disagree with. Not across the board.

There are reasons we have zoning laws, and I wouldn't mind seeing better and more restrictive zoning laws that better allow "walking cities" and less suburban sprawl.

Loosening zoning laws will lead to unscrupulous developers cramming building projects into inadequately zoned areas and making taxpayers and home owners foot the long term costs.

Most zoning laws are why we have sprawl in the first place, for example places where they only allow for single family housing. Loosening the laws in this case means allowing for multifamily housing and more commercial properties (stores, restaurants )built alongside residential housing, which is what creates walkable cities