Wealth Inequality Grows as Economic Freedom Declines

New analysis shows only the top 1% have seen gains in wealth and wages when priced in gold over the past 35 years.

Published on Feb. 12, 2026

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A new analysis of wealth and wage data priced in gold suggests that economic freedom and innovation have declined in the U.S. since the late 1980s, with only the top 1% of earners seeing gains in their financial position over that time. The data shows that the bottom 99% of Americans have seen their real wealth and wages fall when adjusted for gold prices, indicating a systemic shift away from free market capitalism.

Why it matters

This analysis highlights the growing wealth inequality in the U.S. and the need to restore economic freedom and incentives for innovation and productivity. If the majority of Americans are not benefiting from economic growth, it raises concerns about the sustainability of the current system and the potential for social unrest.

The details

The data shows that the top 0.1% of Americans by wealth, those with over $40 million, have seen their relative wealth increase since 1989. Meanwhile, those in the 90th to 99th wealth percentiles were able to build wealth until the early 2000s, when government policies like the Patriot Act enabled bureaucrats to monitor private financial decisions and front-run innovative ideas. This killed the incentive for productivity, as only those with government connections could benefit. The lower wealth tiers all saw declines in wealth, and even the top 20% of wage earners saw real wage decreases when adjusted for gold prices.

  • The analysis compares wealth and wage data from 1989 to 2025.
  • The Patriot Act, enacted in 2001, is cited as a turning point that enabled government interference in private financial decisions.

The players

U.S. Bureau of Labor Statistics

The federal agency that collects and publishes economic and labor statistics, including the Export Price Index for Nonmonetary Gold used in this analysis.

Federal Reserve Bank of St. Louis

The regional Federal Reserve bank that hosts the FRED economic data repository, which provided the wealth distribution data used in this analysis.

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What’s next

Policymakers will need to examine ways to restore economic freedom and incentives for innovation in order to ensure broad-based prosperity.

The takeaway

This analysis suggests that the U.S. has drifted away from free market capitalism, with only the top 1% of earners seeing gains in wealth and wages over the past 35 years. Restoring economic freedom and reducing government interference in private financial decisions will be crucial to reversing this trend of growing inequality.