A great deal of contemporary discussion regarding wealth is focused on inequality and the concentration of assets and power in the hands of billionaires. According to a commonly used statistic called the Gini coefficient, the U.S. is the seventh most unequal country in the world in terms of wealth distribution. Estimates vary somewhat based on the methodology employed, but there are between 900 and 1,100 billionaires in the U.S., and they control about 4% of aggregate wealth.
However, there is a fascinating trend that does not garner much attention: the rise in the number of those with assets of $1 to $5 million. The UBS annual Wealth Report terms them Everyday Millionaires. As shown below, the global number of millionaires is estimated at 60 million of which roughly 52 million fall into the Everyday Millionaire category.
More striking than the absolute number is the rate of growth. Since 2000, the number has increased from 13.27 to 52 million, an annual growth rate of about 6%. This group holds assets of around $107 trillion which is four times the 2000 level and only modestly below the aggregate assets held by those with a net worth exceeding $5 million.
While the growth in the number of Everyday Millionaires is certainly salutary, many of those who reach this milestone are frustrated because inflation has made it difficult to enjoy the lifestyle they expected their wealth to provide.