Top 1% of U.S. Households Capture 31.7% of Wealth, Highest Since 1989
Updated
Updated · The Independent · May 12
Top 1% of U.S. Households Capture 31.7% of Wealth, Highest Since 1989
3 articles · Updated · The Independent · May 12
Federal Reserve data show the top 1% held 31.7% of U.S. wealth in late 2025, pushing inequality to its highest level in nearly four decades.
Record stock gains tied to the AI boom lifted asset owners, while the Iran war drove up fuel costs that hit lower-income households harder; they cut gasoline use 7% in March but still spent 12% more.
The divide persisted even as headline data looked solid: the U.S. added 115,000 jobs in April, but Black unemployment rose to about twice the white rate, according to economist Mohamed El-Erian.
Trump officials have promoted a broad economic "Golden Age," but critics say last year's tax bill favored the wealthy, while Medicaid cuts and the expiration of ACA subsidies squeezed lower-income Americans.
As the AI-driven stock market booms, how can its wealth be shared beyond the richest 10 percent?
Will new government savings accounts for babies meaningfully close the wealth gap for the next generation?
With a major war disrupting global oil, how long can everyday Americans afford the surging cost of living?
The Growing Divide: U.S. Wealth Inequality Reaches Historic Levels in 2025
Overview
The United States remains the most unequal country in the OECD, with the richest 1% capturing 21% of national income as of Q3 2025. This level of concentration matches countries like Mexico and surpasses others such as South Africa. Persistent and extreme wealth disparity is evident, as billionaire fortunes have expanded rapidly in 2025. These trends highlight a long-standing pattern of wealth flowing to the top, creating a fragile economic structure and raising concerns about social and political stability. The report underscores the urgent need for policy action to address these widening gaps and ensure a more balanced future.