New figures from the Federal Reserve show that household wealth in America is now more than $55 trillion. This is worth noting, both because it illustrates the tremendous wealth generated by an economy when tax rates are low and the burden of government is modest (at least compared to most of our friends in Europe) and because it should relieve some of the anxiety of people who fret that Americans do not save enough. To be sure, there are many households who do not have assets, and there are many government programs and tax policies that discourage saving, but there is not a crisis of inadequate savings in America. Investors’ Business Daily offers a cheerful assessment of the economy:
In the fourth quarter of 2006, total net worth — that is, everything people own minus what they owe — jumped 7.4% to $55.63 trillion. We’ve added as much wealth in the last decade as we did in our nation’s first 220 years. … the average household in America owns about $487,095 worth of stuff, free and clear. That’s a big jump from recent years. As recently as 2001, average household wealth was $373,170. So in five years we’ve become a third richer — a truly amazing fact. … Unemployment, at just 4.5%, is way below its long-term average. Real incomes are rising strongly. Inflation remains tame. Company profits — a measure of how efficient businesses are at using scarce resources — are at all-time highs. And, in addition to being richer, we live longer, healthier lives than ever. Even people on the lowest rungs of the economic ladder have far more than they did a decade ago.