And it’s due much to the gains made in the stock market:
The net worth of U.S. households climbed to a record high in the final quarter of last year, boosted mostly by gains on stocks, the Federal Reserve reported Thursday.
Net worth — the difference between households’ total assets, such as houses and bank accounts, and their total liabilities, such as mortgages and credit card debt, totaled $55.6 trillion in the October-to-December quarter.
That marked a 2.5 percent growth rate from the third quarter, the previous quarterly record high. Stocks gains helped fuel the increase in net worth, although real-estate gains played a role, too.
This is quite impressive and shows that, in spite of media reports to the contrary, the economy really is strong. It also is an important reminder that when Democrats try to push through bills that they think are helping the little guy, such as the windfall taxes that they say will “even the playing field” among companies in the energy and pharmaceutical industries, they would be only hurting the American people who have investments in stock market because heavy tax burdens and regulation on companies can adversely affect their stock price. And as we have seen from the article above, American households are affected by the success or decline in the markets.