Most Americans Got Richer During Covid-19 Pandemic

See During Covid-19, Most Americans Got Ahead—Especially the Rich: U.S. households gained $13.5 trillion in wealth in 2020. That isn’t how recessions usually work by Orla McCaffrey and Shane Shifflett of The WSJ. Excerpts:

"U.S. households added $13.5 trillion in wealth last year, according to the Federal Reserve, the biggest increase in records going back three decades. Many Americans of all stripes paid off credit-card debt, saved more and refinanced into cheaper mortgages. That challenged the conventions of previous economic downturns. In 2008, for example, U.S. households lost $8 trillion."

"More than 70% of the increase in household wealth went to the top 20% of income earners. About a third went to the top 1%. The gains were even more heavily concentrated at the top when Americans were grouped by wealth instead of income." 

"Many white-collar employees were able to work from home, and they saved money by not commuting or eating out. The government’s stimulus checks and expanded unemployment benefits kept afloat restaurant servers, housecleaners and others in low-wage service jobs who got laid off.

Many lower-income workers came out ahead. By October 2020, for example, household checking-account balances of the bottom 25% of income earners had risen roughly 50% from the year before"

"Rising stock prices accounted for close to 44% of the overall growth in household wealth in 2020."

"The median sales price of an existing home surpassed $300,000 last year for the first time and has continued to soar, topping $350,000 in May."