Over the years, the wealth gap in the United States has significantly widened. The rich have been accumulating more wealth at the expense of middle and lower-income families.
The COVID-19 pandemic accelerated this trend. The 400 wealthiest Americans saw their wealth increase by 40%, adding trillions to their collective riches.
Between 2020 and 2022, a whopping $42 trillion in new wealth was created, with two-thirds going to the top 1% of Americans.
What does it take to be considered rich in America, apart from the famous billionaires? Let's find out.
To be recognized among the country's top 1%, you need to meet specific financial criteria.
The Internal Revenue Service (IRS) sets the bar for the top 1% based on annual income or net worth.
In 2019, an annual income of $540,009 was the benchmark for being in the top 1%.
The threshold varies by state, with some places requiring over half a million dollars more to join the top 1%.
The top five states with the highest income requirements for the 1% are Connecticut, Massachusetts, New Jersey, New York, and California. The lowest are in West Virginia, Mississippi, New Mexico, Arkansas, and Kentucky.
The wealth gap in America is substantial, and the criteria for being considered rich can differ significantly depending on where you live. It's a complex issue with regional nuances that need to be considered when discussing economic disparity.