Trump and Biden’s pandemic stimulus helped Americans get rich quick

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  • Global wealth grew at its fastest pace this century last year.
  • Wealth in the United States has grown the fastest, likely due to the impact of pandemic stimulus under Trump and Biden.
  • The wealth of minorities has particularly increased, mainly concentrated in housing.

Pandemic aid over the past two years has helped support many Americans struggling to pay their bills — and overall, stimulus funding has given them the biggest boost they’ve ever had received, probably never.

That’s according to Credit Suisse’s new Global Wealth Report, which found that both financial wealth – cash ready to be spent – and non-financial wealth – assets such as housing – reached record highs around the world in 2021. rate movements are taken into account, average wealth increased by 11.3%, researchers say, and total global wealth increased by 12.7% in 2021. This is the fastest rate achieved this century, according to the report, and “almost certainly the fastest rate on record at any time”. time in history.”

These numbers are even higher for Americans and Canadians, who saw the highest change in wealth of any region documented, with an increase of about 14.7% in wealth per adult.

The United States has been gaining ground fairly steadily, the researchers said, and exceeded expectations in 2021 by adding $19.5 trillion to its household wealth – well above second-place China with 11 .2 trillion and Canada in third place with $1.8 trillion.

Democrats approved the $1.9 trillion stimulus bill without any Republican support in March 2021. It injected money into almost every sector of the economy, from individuals to healthcare providers to health care providers. by state and local governments. In particular, he handed out $1,400 in direct payments to most Americans, alongside a $300 federal increase in unemployment insurance. This is in addition to stimulus funding put in place under former President Donald Trump, which included a $900 billion bipartisan package at the end of 2020. That rescue package contained $600 stimulus checks, aid federal unemployment, food and rental assistance.

The report notes that the unemployment hits at the start of the pandemic mainly affected women, young adults and minorities, but that employment rates and labor incomes recovered mainly in high- and middle-income countries. , such as the United States.

And people of color in particular saw their wealth increase between 2019 and 2021. Growth in 2021 was much higher for Black Americans and Hispanics at 22.2% and 19.9%, respectively, than for non-Caucasians. 12.7% Hispanic. The researchers said this is due to the increase in non-financial wealth, particularly real estate.

“The overall wealth picture is positive, even for disadvantaged subgroups,” the researchers said.

The report follows other data from recent years showing that stimulus aid has had a huge influence on the savings Americans have been able to accumulate during the pandemic. Even those who struggled to find work or keep their businesses from going bankrupt were able to rely on government benefits to get by and, in some cases, get ahead. The poverty rate fell to 7.8% in 2021, the lowest level on record, for example. That’s largely thanks to federal assistance over the past year, according to a recent Census Bureau report.

But it’s probably the biggest help Americans will get in quite some time, the report notes.

“Massive business and income support programs undertaken in response to macroeconomic setbacks, along with additional health-related spending, have driven public debt to record non-wartime levels,” the researchers said. . “Future government actions aimed at redressing this situation may well affect wealth creation.”

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