Executive Director Ida Rademacher presented at AFCPE’s Research and Training Symposium on inclusive growth: the backbone of American prosperity.
From the outside, the United States is enjoying an unprecedented level of prosperity: the stock market is up, GDP is stable and rising, and job numbers are strong. And that’s a good thing, right? After all, financial security at the household level is unquestionably linked to macroeconomic stability and growth.
But does this prosperity translate to prosperity for the average American? The simple answer is “no.” It’s not enough that we’re seeing growth — we must consider how it’s occurring. And unfortunately, growth in America is far from Inclusive.
In fact, today, the richest American is worth 31 times as much as in 1982. In the last 30 years, America’s richest have added to their net worth, while those on the bottom have dipped into “negative wealth.” The level of wealth inequality observed in the U.S. is now 10x more concentrated than even income inequality.
But not all hope is lost. As corporations, philanthropies, and government wake up to today’s reality, there emerges a new opportunity to focus on more inclusive growth. And financial advisors have a huge role to play in helping to bridge the gap.