NBER Finds 61% of Americans Sour on Economy as High Pay No Longer Secures Wealth
Updated
Updated · Fortune · May 27
NBER Finds 61% of Americans Sour on Economy as High Pay No Longer Secures Wealth
1 articles · Updated · Fortune · May 27
A new NBER working paper says high earnings no longer reliably translate into wealth, with family assets now playing a bigger role in whether Americans can buy homes and build net worth.
Data on 3.4 million families showed earnings explain only about half of intergenerational housing inequality; among people with similar incomes, children of wealthier parents were substantially more likely to own homes.
Housing helps explain the gap: home prices have climbed to about 5 times median income nationally and above 10 times in metros such as Los Angeles and San Francisco, shutting even high earners out without parental help.
That disconnect is landing as consumer gloom deepens—61% of Americans told Ipsos in April the economy is on the wrong track, and May consumer sentiment fell to its lowest level since University of Michigan tracking began in 1952.
The study suggests the "Bank of Mom and Dad" is becoming more decisive for mobility, especially because housing and pensions make up nearly all wealth for the bottom 95% of earners.
Is the geography of America's richest cities creating a permanent barrier to upward mobility?
With homeownership an inherited privilege, what does financial security look like for everyone else?
If the 'Bank of Mom and Dad' is the only lender, is the dream of merit-based success over?
U.S. Economic Pessimism Hits 2026 High: The K-Shaped Recovery and the Wealth Tax Debate
Overview
As of May 2026, economic anxiety is widespread in the United States, with most Americans feeling the country is on the wrong track and over half believing their financial situation is getting worse. This pessimism, now at levels not seen since the Great Recession, has grown for five straight years. Consumer sentiment has dropped across all groups, reflecting rising economic pressures. These trends highlight a deep and growing concern about both personal and national finances, as Americans face ongoing challenges that cut across income levels and demographics.