John Carney, business and finance editor at Breitbart, discusses how Bidenomics is hurting the American middle class in “The Bottom Line.”
It is becoming increasingly expensive to break into the top 1% of wealth in the US
According to Knight Frank's upcoming 2024 Net Worth Report, you now need a net worth of at least $5.8 million to be part of this small but elite group. That's a significant 12% increase compared to the $5.1 million needed just a year ago.
By comparison, Americans needed a net worth of $4.4 million in 2022 to earn the coveted 1 percent status.
Although the US economy is the largest in the world, the barrier to being in the top 1% is much higher in other countries.
MORE AMERICANS GET A SECOND JOB TO COMPENSATE FOR HIGH INFLATION
This photo shows a view of moored yachts in Hercules Harbor during the 32nd edition of the International Monaco Yacht Show in Monaco on September 27, 2023. (Photo by VALERY HACHE/AFP via Getty Images / Getty Images)
The hardest country to join the ranks of the richest countries is Monaco, where it requires a whopping $12.9 million. This means an increase of 3.2% compared to the previous year.
Luxembourg and Switzerland also have a higher threshold, with respective requirements of $10.83 million and $8.5 million, respectively, to be in the top 1%, according to Knight Frank findings, first published by Bloomberg were published.
The US ranks fourth in the world in terms of assets required to join this ultra-exclusive club. This is followed by Singapore, Sweden, Australia, New Zealand, Ireland and Germany.
High inflation is still weighing on Americans' households
“Our results confirm the significant differences in wealth distribution between countries,” Knight Frank said in the report. “Expect policy to focus more on where wealth is located, how it is distributed across economies, and how governments can both tax it and promote its growth.”
The findings come at a time when high inflation and rising interest rates continue to hurt low- and middle-income Americans.
A recent study found that the power of a six-figure salary is rapidly diminishing in America. (iStock / iStock)
A recent study published by GOBankingRates found that the power of a six-figure salary is rapidly waning in America, especially in more expensive cities like San Francisco, Arlington, Virginia, and San Jose, California. In fact, in some of these cities, a salary of $150,000 is even considered “lower middle class,” the study says.
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But even as the purchasing power of ordinary families has fallen due to rising prices, the net worth of the 400 richest people in the US has soared thanks to the stock market recovery and the AI-driven technology boom.
Forbes reported in December that the richest 400 Americans earned a combined $500 billion in 2023 and are now worth a combined $4.5 trillion. This is the highest level since 2021, according to Forbes' Real-Time Billionaires List.