Higher Wages Aren’t Changing the Widening Wealth Divide

Divergent Earnings

The average American paycheck has grown over the past years. But the fruits of all our economic labor are distributed unevenly across the wealth spectrum.

High-income workers have seen significant increases to their wealth, while others have made only modest gains, underscoring the growing wealth disparity across the U.S.

The Wage Landscape

On the whole, Americans are making more money this year. Wage growth has accelerated 4.6% year-over-year, according to the Bureau of Labor Statistics’ Employment Cost Index..

But the wealth narrative diverges sharply between classes. Top earners, who already have a higher net worth, enjoyed a 22% income boost between 2019 and 2022. Meanwhile, middle class workers with a median net worth lingering below $200,000 gained just 5%.

Wealth Building

This wealth gap is a likely contributor to waning economic optimism among middle class Americans, even in the face of the strong job market and surprising third quarter economic growth.

Are the rich just getting richer? There’s another important aspect to the growing wealth divide: investing. Retail investing has been on the rise, including among younger and more diverse groups.

Ready to invest in your goals? It’s easy to get started when you open an Active Invest account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS23110202