The net worth of American households is growing. Did you hear that on the news? Jerry Bowyer reports at National Review Online
"Would you judge the status of someone’s personal finances without even looking at his assets? Probably not. But that hasn’t stopped the mainstream media from obsessing over the level of debt of the average American family, which they only look at in a vacuum, completely ignoring the growth of family net worth.
"According to the Federal Reserve’s “Flow of Funds” report, released last month, the net worth of the American household (measured as assets minus liabilities) stands at a robust $51 trillion — yes, that’s trillion with a “T.” This isn’t just higher than last year (or the year before that; or the year before that). It’s almost twice what it was in 1995 and over 27 percent higher than it was in 1998 — right in the middle of Clinton’s “economic miracle.”
"In other words, American households may be borrowing more today, but they’re acquiring even more assets. And thanks to low interest rates they’re borrowing in an environment that is particularly friendly to borrowing.
"The result of all this is the highest level of household wealth in our nation’s history."
Update The quote says $51 trillion in net worth. That is assets minus liabilities. It is GOOD news. (As it says.) (I am not receiving commenters email address, so I can't respond directly.)
Thursday, January 05, 2006
Good news - Americans' net worth
The net worth of American households is growing. Did you hear that on the news? Jerry Bowyer reports at National Review Online
"Would you judge the status of someone’s personal finances without even looking at his assets? Probably not. But that hasn’t stopped the mainstream media from obsessing over the level of debt of the average American family, which they only look at in a vacuum, completely ignoring the growth of family net worth.
"According to the Federal Reserve’s “Flow of Funds” report, released last month, the net worth of the American household (measured as assets minus liabilities) stands at a robust $51 trillion — yes, that’s trillion with a “T.” This isn’t just higher than last year (or the year before that; or the year before that). It’s almost twice what it was in 1995 and over 27 percent higher than it was in 1998 — right in the middle of Clinton’s “economic miracle.”
"In other words, American households may be borrowing more today, but they’re acquiring even more assets. And thanks to low interest rates they’re borrowing in an environment that is particularly friendly to borrowing.
"The result of all this is the highest level of household wealth in our nation’s history."
Update The quote says $51 trillion in net worth. That is assets minus liabilities. It is GOOD news. (As it says.) (I am not receiving commenters email address, so I can't respond directly.)
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2 comments:
What's the point of "Bush's Tax Cuts" in the chart? There is no necessary causation between the two events. Might as well have put Marlins win the World Series.
51 trillion in assets. What are the liabilities?
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