As the outbreak of new coronal pneumonia spreads, millions of U.S. households have suffered economic damage and the number of millionaires has plummeted. At the end of last year, the number of wealthy Americans grew for the 11th year in a row, with an unprecedented 11 million millionaires. However, the impact of the outbreak on the economy and the stock market crash have changed the situation. The number of households with net assets of more than $1m fell by at least half a million as of March 20, according to Spectrem Group, a research firm.
The company’s report analyzes changes in the net worth of U.S. households, ranging from $100,000 to $25 million or more. The number of millionaires in the United States has fallen from 11 million to 10.52 million so far this year, a drop of nearly half a million, it said. The report defines millionaires as people with net worth between $1 million and $5 million.
The number of U.S. households with net worth of more than $25 million fell to 178,000 from 196,000 at the end of last year, suggesting that the number of wealthiest Americans at the top fell by nearly 10 percent in three months. Households with net assets between $5 million and $25 million fell by more than 5 per cent to 1.44 million from 1.52 million. In addition, the number of the wealthy population with net worth of more than $100,000 fell from 31.8 million to 31.6 million.
Bloomberg reports that the financial and public health crises triggered by the new coronapneumonia outbreak have had a greater impact on the wealth of wealthy Americans, who are more likely to hold stocks than the population as a whole. By the end of last year, the richest 1 per cent of Us households owned 53.5 per cent of shares and mutual fund shares, according to the Fed.
According to the Bloomberg Billionaires Index, the world’s 500 richest people have lost nearly $1.3 trillion, or 21.6 percent, so far this year. Of these 500 billionaires, 180 are Americans, who have lost $433 billion.
According to real-time statistics released by Johns Hopkins University in the United States, as of 10:49 a.m. Beijing time on March 25, there were 55,041 confirmed cases of new coronary pneumonia in the United States, resulting in a cumulative total of 790 deaths. Of these, 26,374 were confirmed in New York State, the worst-affected state in the United States. The number of confirmed cases in California reached 2,562 and in Washington state 2,469.
Bloomberg, citing people familiar with the matter, said the White House and Senate Democrats and Republicans reached an agreement on a $2 trillion stimulus package at 1 a.m. local time on March 25 to deal with the economic impact of a new coronavirus outbreak.
Details have not been released, but negotiators are working on a package that includes billions of dollars in aid to businesses, states and cities, checks to most Americans, loans and assistance to small businesses to maintain their wages, expand unemployment insurance, delay taxes, and many other provisions.