America's Economy Stagnant Since 1989, Benefiting Billionaires

Got story updates? Submit your updates here. ›

A new analysis by investigative journalist Eric Zuesse reveals that while the U.S. stock market has seen annualized real returns of over 8% since 1989, the real median household income in America has grown by less than 1% per year over the same period. Zuesse argues this stagnation has disproportionately benefited the country's billionaires and wealthiest 1%, who own around 50% of U.S. stocks, while the bottom 50% of Americans own only about 1% of the stock market.

Why it matters

Zuesse's findings highlight the growing economic inequality in the United States, where the gains from economic growth have been concentrated among the super-rich while the majority of Americans have seen little improvement in their standard of living. This raises concerns about the health of American democracy, as the political system appears to be dominated by the interests of the wealthy elite.

The details

Zuesse's analysis shows that while the real (inflation-adjusted) median household income in the U.S. grew from $66,290 in 1989 to $83,730 in 2024 - an annual growth rate of just 0.662% - the real annualized returns on the S&P 500 stock index were 8.8% over the same period. He argues this disparity is due to the concentration of stock ownership among the richest Americans, with the top 1% owning around 50% of U.S. stocks and the bottom 50% owning just 1%. Zuesse also notes that a small number of institutional investors, including BlackRock, Vanguard, and State Street, effectively control a large portion of the S&P 500 companies.

• The real median household income in the U.S. was $66,290 in 1989.
• The real median household income in the U.S. was $83,730 in 2024.
• The real annualized return on the S&P 500 stock index was 8.8% from 1989 to 2024.