A recent study has revealed that a salary of USD 150,000 is now considered lower middle class in expensive cities in the United States. This update on economic requirements comes as the bar to be part of the exclusive group of the richest 1% in the country has risen to a net worth of at least USD 5.8 million, a 12% increase compared to just a year ago.
According to Knight Frank’s 2024 wealth report, the widening economic gap and the impact of inflation and rising interest rates are making it increasingly difficult for lower and middle-income families to keep up. The study also shows that the gap between the wealthiest individuals and the rest of the population continues to grow.
In addition, the report highlights the escalating wealth thresholds in the United States and other countries, with Monaco, Luxembourg, and Switzerland topping the list with even higher requirements to enter the elite 1% club. The report suggests a future where government policies may need to focus more rigorously on wealth distribution and taxation strategies.
While the 400 richest Americans saw their collective wealth increase by $500 billion in 2023, reaching a total value of $4.5 trillion, the economic difficulties faced by much of the population emphasize the urgent need for more equitable policies and inclusive growth opportunities. As the wealth gap continues to widen, addressing the economic and social repercussions of these disparities has become increasingly crucial in today’s society.