Jeremy Horpedahl in The City Journal:
The Federal Reserve’s latest Survey of Consumer Finances contains several revelations about the state of the American economy.
First, it found that the average American household’s net worth is over $1 million. Outliers can distort averages, of course, but even median household wealth is at the Fed’s highest level ever recorded. In 2019, it was still stuck below pre-Great Recession levels. By 2022, however, it had reached $192,000, eclipsing the 2007 mark by more than 10 percent, and almost doubling the post-Great Recession 2010 figure. (These and all subsequent data are adjusted for inflation.)
Income data complicate this rosy picture. The Census Bureau found that median household income has declined by almost 5 percent since 2019. That raises a question: How can median household wealth be up by 37 percent since 2019 at the same time median household income declined?
More here.