Family Web Price Has Elevated Comparatively Steadily

On March 7, 2025, I highlighted Herb Stein’s article “Steadiness of Funds,” which appeared in David R. Henderson, ed. The Concise Encyclopedia of Economics. That led to a vigorous dialogue within the Feedback part.

Frequent commenter Warren Platts famous that the U.S. Web Worldwide Funding as a share of GDP has gone downhill since about 2007 and now sits at minus 90%.

Which may sound scary and it did make me surprise.

However what issues to most Individuals shouldn’t be how a lot international funding there’s however, reasonably, how a lot their web price is and the way that has modified.

So I checked out these information and was reassured.

The St. Louis Fed’s FRED web site reveals U.S. households’ web price in present {dollars} from the 4th quarter of 1987 to the 4th quarter of 2024. It rose from $17.426 trillion in 1987 to $160.345 trillion in 2024. $17.426 trillion in 1987 $ is $47.641 trillion in 2024 $. So family web price over these 37 years elevated by 237%.

After all, the variety of households elevated too. In accordance with FRED, it rose from 89.479 million in 1987 to 132.216 million in 2024.

That signifies that common family wealth, in 2024 {dollars}, rose from $532,426 in 1987 to $1,217,504 in 2024, a rise of 129%.

How about for the shorter interval referenced by commenter Platts: 2007 to 2024?

In 2007, family web price was $65.754 trillion. In 2024 $, that’s $98.702 trillion. So family web price elevated by 62.5%.

The variety of households elevated from 116.011 million in 2007 to 132.216 million in 2024.

So family web price per family elevated from $850,799 in 2007 to $1,217,504 in 2024, a rise of 43%.

Word that these are averages, not medians. The online price for a median family at every time limit is under the common.

However what issues right here is the common, provided that the problem is the scenario of america as an entire. It says that on common, Individuals are getting wealthier regardless of (possibly partly due to?) elevated international funding.