There has been much talk of class-warfare and 99% propaganda over the past year in the US. People have declared that the wealthy don’t pay their “fair share” and that the lower and middle classes have taken the brunt of the recession. However, recent statics contradict that sentiment and show that the wealthy were hit the hardest because of their stock exposure. CNBC explains:
“America’s millionaire population declined last year for the first time since the financial crisis, according to a new report.
The population of U.S. millionaire households (households with investible assets of $1 million or more) fell to 5,134,000 from 5,263,000 in 2011, according to The Boston Consulting Group’s Global Wealth study.
Total private wealth in North America fell by 0.9 percent, to $38 trillion.
The ultra-rich were the largest losers in dollar terms. Households in North America with investible assets of more than $100 million saw their wealth decline 2.4 percent. Their population declined slightly to 2,928 from 2,989.
The main reason for all this wealth loss? Stocks.
With the wealthy today increasingly dependent on stocks for wealth, last year’s stalled stock market shrunk the population of millionaires and nicked the fortunes of existing millionaires. According to BCG, the amount of wealth held in equities declined 3.6 percent last year.”