WSJ: Millionaire Ranks Hit New High

[question everything]

Millionaire Ranks Hit New High

Fueled by Investment Gains, Growth In Number of Households Is Highest Since 1998

By ROBERT FRANK
Staff Reporter of THE WALL STREET JOURNAL
May 25, 2005; Page D1

The number of millionaires in the U.S. increased to a record last year, boosted by gains in stocks and global financial markets, according to two new studies.

The number of U.S. households with a net worth of $1 million or more rose 21% in 2004, according to a survey released yesterday by Spectrem Group, a wealth-research firm in Chicago. It is the largest increase since 1998, according to the study, which was based on data from more than 450 qualified respondents.

(snip)

The studies suggest that despite falling wages for nonmanagement employees in 2004, the fortunes of those at the top continued to rise. Unlike many wage earners, the wealthy rely on investments for much of their increasing wealth. They also tend to invest in higher-risk and potentially faster-growing investments, including hedge funds, private-equity funds and debt instruments.

The findings mark the second straight year of growth for millionaires in the U.S. After rising rapidly in the late 1990s, the fortunes of the wealthy tumbled with the bear market of 2001 and 2002. Last year, however, with the economy expanding and stocks recovering, the wealthy staged a comeback.

(snip)

Write to Robert Frank at [e-mail]

URL for this article:
http://online.wsj.com/article/0,,SB111697778588742347,00.html

[Carolab]

1. More evidence of the growing gap between the "haves" and the "have mores"

creating more of the "have nots"

[RobertSeattle]

2. Here's a non subscription url (7.5 Millionaires in US!)

http://money.cnn.com/2005/05/25/pf/record_millionaires/

When you add up a home value minus mortgage, a 401K, perhaps some money from inheritance, getting to a mill isn't that our of the ordinary.

[leesa]

3. I suppose a lot of them will be jumping out of windows soon.

[Dora]

4. And what are the numbers

for households earning less than $30,000 a year? Earning less than $24,000?

I wish there were an emoticon for spitting in anger.

[ultraist]

9. Median income has been dropping since Bush took office

These stats are outdated, but things are steadily getting worse for anyone who earns below 200k.

14% of the US earns over 100k. I believe only 6% earn over 200k.

http://www.census.gov/prod/2003pubs/p60-221.pdf

2002 median household money
income in the United States was
$42,409, representing a 1.1 percent
real decline from its 2001 level of
$42,900.1 By type of residence, the
decline in median household money
income was experienced mainly by
households in metropolitan areas.

The real median money income
of both family and nonfamily
households declined between
2001 and 2002. Overall, family
household income dropped
0.8 percent to $52,704.
Nonfamily households experienced
a decline of 2.4 percent
to $25,406.

Per capita money income
declined by 1.8 percent, in real
terms, between 2001 and 2002
to $22,794. This is the first
annual decline in per capita
income since 1991.

For percent distributions for income, see page 25 of this report.

[Joebert]

5. And as much money as $1M is, they believe they're rich!

$1M is a nice house, in an expensive area.

$1M is some money handed down from grandparents/parents who saved for decades.

$1M is beneath what the truly wealthy would work for, for a month.

Ask a CEO.

[Carolab]

11. $1M is what I would have if I hadn't been gouged for taxes for years

As a middle class slave

[Joebert]

14. Hey, we NEEDED those bombs.

And Enron.

And Savings and Loan bailouts.

And Halliburton.

Don't go and get all unpatriotic. You need to pay your taxes so the truly rich don't have to.

:-P

[ultraist]

6. Things just keep getting better and better

For the top 6%! All while the median income is stagnant and the poverty rate has increased.

[keopeli]

7. There are a whole lot of people who believe Millionair is rich...including

me.

It's not very encouraging to know the rich are getting richer in our country in crisis.

[A HERETIC I AM]

8. Here's a way to see how the economy is affecting regular folks........

When times were good for everybody, sales of small boats and small RV's (Trailers and small van-based units) were up as well as larger units. When the rich get richer (Like now) Ranger Boats (Specializes in Bass fishing boats) sees a slump but Bertram Yachts (Specializing in 45' or better off-shore pleasure boats and sportfishermen) sees a sales increase.

True?
Or not?

I haven't done a search to verify but it seems to make sense that this would be the case. I certainly cant afford to buy even a $20,000 boat right now but i could have back in 98. (I bought a Corvette instead) In economic times like these, and they are the same symptoms as the Reagan years, the rich do EXTREMELY well while the rest of us hold our own or do worse.

[Protagoras]

10. NEW HIGH FOR HOMELESS? INSURANCELESS?

Jobless? Educationless? Hopeless?

For each ONE new Millionaire made...how many THOUSANDS of the above were made?

:puke:

[applegrove]

12. Yup the US is right beside Mexico & Russia on the equality index.

MEXICO & RUSSIA!

Another one in the successful plans of Bush to 'grow' more republicans. Tax cuts. Grrrrrr!

[funflower]

13. Can you say "real estate bubble"?

[AP]

15. Hard to get wealthy from work, easy to get wealthy from being wealthy.

You can thank the tax code and the president.

[GiovanniC]

16. I'm Going to Go Out on a Limb and Guess

... nobody that I know.