America's top 1$ Don't make as Much as you Might Think

The assertion that the earnings of the wealthiest 1% in the United States are not as high as one might assume is an interesting perspective, but it seems to be somewhat nuanced. According to Bloomberg, economists like Thomas Piketty, Emmanuel Saez, and Gabriel Zucman have extensively discussed wealth and income inequality, highlighting the complexities of how wealth is distributed and perceived3. However, specific data on the earnings of the top 1% suggests that they hold a significant portion of the country's wealth and income.

To join the top 1%, an individual typically needs to earn around $407,500 annually, while a household requires about $591,5502. This income level is significantly higher than the median household income in the U.S., which was approximately $80,610 in 20232. The top 1% also hold a substantial share of the nation's wealth, with their combined net worth reaching $34.2 trillion as of 20204.

The wealth of the top 1% has grown significantly over the years, partly due to their substantial ownership of stocks and other investments2. This group's wealth has increased more rapidly than that of the middle class, contributing to a widening wealth gap12.

In summary, while the earnings of the top 1% might not be as astronomically high as some might imagine, they are still significantly higher than those of the average American. The wealth and income disparities in the U.S. are complex issues influenced by various factors, including tax policies and investment opportunities.

Sources:

1. Bloomberg - "Top 1% of U.S. Earners Now Hold More Wealth Than All of the Middle Class"
   https://www.bloomberg.com/news/articles/2021-10-08/top-1-earners-hold-more-wealth-than-the-u-s-middle-class

2. Investopedia - "What Is the Average Net Worth of the Top 1%?"
   https://www.investopedia.com/financial-edge/1212/average-net-worth-of-the-1.aspx

3. Bloomberg Opinion - "America's Top 1% Don't Make as Much as You Might Think"
   https://www.bloomberg.com/opinion/articles/2023-11-15/america-s-top-1-don-t-make-as-much-as-you-might-think

4. Bloomberg - "The 50 Richest Americans Are Worth as Much as the Poorest 165 Million"
   https://www.bloomberg.com/news/articles/2020-10-08/top-50-richest-people-in-the-us-are-worth-as-much-as-poorest-165-million