Highest Level of Household Wealth in Our Nation’s History?
Jerry Bowyer still has no clue as to the concept of real wealth per capita:
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.” … The result of all this is the highest level of household wealth in our nation’s history.
Given that the price-level has increased by 16.5% over the past seven years, aggregate real wealth has increased by only 9% since 1998. Given that population has increased by 7.4% over this same time period, real wealth per capita is now only 1.5% higher than it was in 1998. Add to these simple realizations the fact that real wealth per capita increased by more than 1.5% from 1998 to 1999, Mr. Bowyer’s claim is ludicrous. Yet, we hear this same claim over and over from NRO Financial.