Americans have more money than all the countries of the world make in goods and services.
With a net worth of US$84 trillion, according to the Federal Reserve, they’re comfortably ahead of the world which has a combined gross domestic product of US$77 trillion including nearly US$18 trillion by their own country.
The Fed report covers households and non-profit organizations and are not adjusted for inflation or population growth.
Their net worth, or the value of homes, stocks and other assets minus debts and liabilities, soared US$1.6 trillion in the three months to March alone.
A Wall Street Journal analysis concludes that if the pace keeps up, it could bolster economic growth because it will induce more people to spend.
Real estate, the biggest asset for most Americans, is up US$500 billion, with stocks and mutual funds close behind with a US$487 billion increase.
The so-called “wealth effect”, described as increased spending prompted by having more money, surged 639 percent in the first quarter, the highest in eight years, according to WSJ.
It says Americans are also making great progress slashing debt.
Total household debt as a share of disposable income was 106.5 percent in the first quarter against 107.5 percent in the previous quarter.
It’s the lowest in more than a decade, WSJ says.
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