Friday, June 08, 2007

Record Household Net Worth Exceeds $56 Trillion

Associated Press: U.S. households' total net worth continued to climb in the first quarter of 2007, advancing 1.1 percent to a record $56.18 trillion, the Federal Reserve said Thursday (see graph above).

In the January-March period household net worth grew for the 18th consecutive quarter. The record $56.18 trillion posted in the most recent quarter was up from the fourth quarter's $55.59 trillion, the previous record high.

Note: This was an increase of $590 billion in net worth since the previous quarter, which is about $2000 per person, or $8000 per household of four. The average person uses about 40 gallons of gas per month, or 120 gallons in a quarter. Even in a quarter when gas prices rise by $1 per gallon (which would be unusally high), it would only adversely affect the spending of the average household of two drivers by $240, which seems kind of insignificant in comparison to the increase in the average household net worth.


At 6/09/2007 10:35 AM, Blogger juandos said...

Oh those dastardly Bush Tax Cuts for the Rich ...LOL!

At 6/24/2007 11:40 PM, Anonymous Anonymous said...

This statistic tells us very little. How does the rise in net worth compare to the rise in the number of households? Knowing the average net worth would tell us a lot more. Is average net income rising when adjusted for inflation? What happens to these numbers when we remove the top 5% of households from the numbers?


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