The economy is far too tight for many Americans — more about how to fix that in a minute — but first some good news: Household wealth is on the rise.
And not by a small amount. New data from the Federal Reserve says household wealth grew by $14 trillion from the first quarter of last year through the third quarter. Even after adjusting for inflation, that’s a $12 trillion increase and an annualized rate of more than 10% growth — almost $20,000 for the median family.
For context, that’s roughly 20 times better than President Joe Biden’s annual tally. Put differently, in less than a year, President Donald Trump has delivered four times the household wealth of Biden’s entire four-year term.
In fact, this skyrocketing increase is even better than Trump’s first term, when household net wealth grew almost 7% per year, even with the government-imposed lockdowns during COVID that killed economic growth.
What’s driving the explosion in household wealth? A combination of lower inflation along with incredible economic expansion, productivity growth, deportations, tax cuts and the most deregulation in American history.