Share

1 in 5 in US becomes rich

Washington - Fully 20% of US adults become rich for parts of their lives, wielding extensive influence over America's economy and politics, a survey shows.

These "new rich," made up largely of older professionals, working married couples and more educated singles, are becoming politically influential and economists say their capacity to spend is key to the US economic recovery.

Their rise, the survey shows, is also a sign of the nation's continuing economic polarisation.

They extend well beyond the wealthiest 1%, a traditional group of super-rich millionaires and billionaires with long-held family assets. The new rich have household income of $250 000 or more at some point during their working lives, putting them — if sometimes temporarily — in the top 2% of earners.

Fiscally conservative

The new survey data on the affluent are being published in an upcoming book and an analysis by The AP-NORC Centre for Public Affairs research provided additional information on the views of the group.

In a country where poverty is at a record high, today's new rich are notable for their sense of economic fragility. They rely on income from their work to maintain their social position and pay for things such as private tutoring for their children. That makes them much more fiscally conservative than other Americans, polling suggests and less likely to support public programmes such as food stamps or early public education, to help the disadvantaged.

Last week, President Barack Obama said last week that growing inequality was "the defining challenge of our time," signalling that it would be a major theme for Democrats in next year's elections.

The new research suggests that affluent Americans are more numerous than government data depict, encompassing 21% of working-age adults for at least a year by the time they turn 60. That proportion has more than doubled since 1979.

Dream more elusive

Even outside periods of unusual wealth, members of this group generally hover in the $100 000-plus income range, keeping them in the top 20% of earners.

At the same time, an increasing polarisation of low-wage work and high-skill jobs has left middle-income careers depleted.

Mark Rank, a professor at Washington University in St Louis, who calculated numbers on the affluent for a forthcoming book, "Chasing the American Dream," said: "For many in this group, the American dream is not dead.

"They have reached affluence for parts of their lives and see it as very attainable, even if the dream has become more elusive for everyone else."

As the fastest-growing group based on take-home pay, the new rich tend to enjoy better schools, employment and gated communities, making it easier to pass on their privilege to their children.

In Gallup polling in October, 60% of people making $90 000 or more said average Americans already had "plenty of opportunity" to get ahead. Among those making less than $48 000, the share was 48%.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.82
+0.4%
Rand - Euro
20.38
+0.3%
Rand - Aus dollar
12.30
+0.3%
Rand - Yen
0.12
+0.3%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders