Wsj Project

U.S. Wealth Rises, But Not All Benefit.

Neil Shah. March 7, 2014. Retrieved From

http://search.proquest.com/docview/1504719980?accountid=12085

ECONOMIC GROWTH

The article “U.S Wealth Rises, But Not All Benefit” by Neil Shah is in response to new data that was just released showing that Americans are wealthier than ever before. Surges in the stock market have caused an increase in the value of owned stocks/mutual funds by 5.6 trillion dollars, along with an increase in the value of residential real estate estimated at 2.3 trillion dollars. This increase in owned stocks/mutual funds and increase in real estate has caused the U.S. household net worth to rise to its highest total ever, even after adjustments for inflation. These figures are deceiving though as many Americans are feeling the wrath of the recent recession. While the American economy has grown substantially in recent years most of the wealth has not been distributed to many other social classes other than the already wealthy. The benefits of an improved economy will continue to be limited until the improvements reach more people. While job growth, retail sales, and the housing markets figures are stagnant and below expected levels, economists are hopeful that the improvements in household finances will help overall growth pick back up to natural historical levels. Due to the increase of wealth inequality over time and the economic growth associated with it, if the economy continues in this direction the majority of Americans will still feel as if they are in a recession while the affluent will continue to gain more and more. Without the dispersing of economic improvements and growth, the American economy will look good on the outside with high numbers for average household net worth but the majority of Americans will suffer. The benefits of this growth will eventually stunt the economy in the long run due to less spending by the majority of the population and more keenness to save and preserve...