The concentration of wealth in the U.S. stock market has reached historic levels, with the top 10% of Americans now controlling roughly 88% of all equities. Analysts note that this gap has widened steadily over decades as asset owners benefited from compound returns, favorable tax treatment, and sustained market growth, while wage growth for most households lagged behind.
The math behind this divergence is straightforward. U.S. equities have delivered average annual returns of around 8–10% over long periods. Households without consistent exposure to stocks missed out on compounding gains, making it increasingly difficult to catch up even during strong economic expansions.
Economists argue this trend is less about fairness and more about participation. The system itself is unlikely to change, but individuals still face a clear choice: remain outside capital markets or find ways to gradually take part in long-term asset growth.
