Wealth Inequality in the U.S. Reaches Extreme Levels, New Report Finds

Over the past 33 years, wealth inequality in the United States has surged to staggering levels, according to a new analysis by Oxfam America. Between 1989 and 2022, households in the top 0.1% gained an average of **$39.5 million** in wealth, while those in the top 1% added **$8.35 million**. In stark contrast, households in the bottom 20% saw their wealth increase by **less than $8,500** during the same period—a disparity of nearly **1,000 to 1**.

The trend has accelerated recently. In the past year alone, the 10 richest U.S. billionaires increased their collective wealth by **$698 billion**. As a result, the top 0.1% now holds a record **12.6%** of the nation’s total wealth.

“The data confirms what people across our nation already know instinctively: the new American oligarchy is here,” said Abby Maxman, President and CEO of Oxfam America. “Billionaires and mega-corporations are thriving while working families struggle to afford housing, healthcare, and even groceries.”

**Roots in Policy and Discrimination**

The report attributes rising inequality not only to recent policy choices but also to decades of systemic discrimination. Between 1989 and 2022, the average White household accumulated **7.2 times more wealth** than the average Black household and **6.7 times more** than the average Hispanic household. Male-headed households, on average, gained **four times** the wealth of female-headed households over the same period.

Oxfam also highlights specific policy decisions that have exacerbated the divide. For example, the report projects that by 2027, the so-called *One Big Beautiful Bill Act*—associated with the Trump administration—will cut taxes for the top 0.1% by an average of **$311,000**, while raising taxes on households earning less than **$15,000 per year**.

**Calls for Structural Reform**

The report’s foreword, authored by Elizabeth Wilkins, President and CEO of the Roosevelt Institute, frames today’s crisis as the culmination of 50 years of policy choices that prioritized the wealthy. “We are seeing the dark extremes of choosing inequality,” she writes, advocating for bold reforms: rebalancing economic power, overhauling the tax code, strengthening the social safety net, and empowering workers.

Senator Elizabeth Warren echoed this urgency, noting that “a minimum wage job won’t keep a mother and baby out of poverty” and “won’t pay rent on a two-bedroom apartment anywhere in this country.” She recalled a post–World War II era when workers shared more fairly in national prosperity—and warned that the current path benefits only those at the very top.

**Broader Trends Confirm the Crisis**

Oxfam’s findings align with other recent studies. A February 2024 RAND Corporation report documented a sharp rise in wealth concentration between 1975 and 2023. Similarly, the Economic Policy Institute found that from 1979 to 2024, wages for the top 1% grew by **182%**, while those for the bottom 90% rose by just **44%**.

Together, these analyses paint a consistent picture: economic inequality in the U.S. is not only deepening—it is accelerating, driven by policy, power imbalances, and historical injustices that continue to shape outcomes today.

A growing number of Utahns are finding themselves under increasing financial strain amid a combination of persistent inflation, a cooling job market and a federal government shutdown that has sidelined hundreds of thousands of workers and disrupted key programs.

Emma and Bryan Mendez-Edwards of Heber City, both college-educated professionals, are among those feeling the squeeze.

“Bryan is a federal worker,” Emma said. “And I’m currently working at the health department as an epidemiologist on a federal grant. So yeah, it’s been a crazy rollercoaster over here.”

Bryan, who works in federal human resources, has been furloughed, and the couple worries the temporary halt could become permanent.

“As this shutdown continues, he’s facing a potential federal workforce reduction,” Emma said. “He’s only been in his position for seven or eight years — and we’re worried it could be a first-in, first-out layoff. It’s definitely been a source of anxiety this year.”

At the same time, rising living costs and resuming student loan payments are putting added stress on their budget.

“Groceries and utilities just keep going up,” Emma said. “And with the end of the SAVE program that was limiting student loan payments, that’s another big concern.”

For now, they’re staying afloat with Emma’s salary and a side job Bryan picked up. Their mortgage is also part of an affordable housing program, which Emma calls a saving grace. But she says the situation may feel more urgent by the end of November if the shutdown continues.

They are far from alone.

A new Deseret News/Hinckley Institute of Politics poll of 809 Utah voters found that 51% are living paycheck-to-paycheck and struggling to save. In contrast, 25% say they are having difficulty covering basic expenses. Just 22% report being financially secure.

Financial hardship is appearing across generations. Roughly the same share of Gen Z, millennials, and Gen X — around 28% — say they are struggling. Baby boomers, however, are less affected, with 18% reporting financial strain.

When asked about their top financial concern, the most common response was saving for the future (23%), followed by paying for daily necessities (19%) and managing debt or housing costs (15%). Health care expenses were a top concern for 12%, and job stability for 8%.

Emergency service organizations like Crossroads Urban Center are seeing the strain firsthand. Executive director Glenn Bailey said demand for food and basic assistance has surged over the past few years and is now rising even faster due to the shutdown.

“People come to the food pantry after they’ve already paid rent or a utility bill,” Bailey said. “With cuts and delays in benefits and tuition assistance, people just have fewer safety nets.”

Housing costs are a major driver of financial stress, said Phil Dean, chief economist at the University of Utah’s Kem C. Gardner Policy Institute. About 30% of Utahns pay more than the recommended 30% of their income toward housing, a key threshold signaling financial pressure.

Dean noted that even those earning middle-income salaries can feel squeezed — and the poll reflects that. Of those struggling to meet daily expenses, 17% earn between $50,000 and $100,000 a year, and 11% earn more than $100,000.

The job market, while still relatively strong in Utah, is also shifting. Fewer companies are hiring or offering opportunities for workers to leap to higher-paying jobs.

“You’re seeing both employers and employees holding tight,” Dean said. “There’s less movement and fewer options than we saw over the last few years.”

Still, he said Utah’s economy remains more stable than most states.

“We’re seeing slower growth — economic moderation,” Dean said. “But Utah is still well-positioned.”

Despite the uncertainty, Mendez-Edwards says she and her husband are focusing on the support they do have.

“We both have really supportive families,” she said. “We’re able to talk through things and get help if needed. And we both love the work we do. That keeps us grounded.”

What salary is considered ‘upper class’ in 2025? It depends on who you ask

Wealth is truly in the eye of the beholder—at least according to a recent survey of 1,000 Americans conducted by GOBankingRates. The study explored how different generations define what it means to be “upper class” based on annual income.

Among Baby Boomers (born between 1946 and 1964), 35% said a household income between $100,001 and $250,000 qualifies as upper class. Another 20% of Boomers set the bar much higher, believing you’d need to earn over $500,000 annually to reach that status.

Millennials (born 1981–1996) held similar views: about 37% placed the upper-class threshold in the $100,001–$250,000 range.

Generation Z (born 1997–2012), many of whom are just starting their careers, had more modest expectations. Over a third said an income between $75,001 and $200,000 would be enough to be considered upper class.

Notably, the survey didn’t include responses from Generation X (born roughly between 1965 and 1980).

So, what actually defines “upper class” in objective terms? The U.S. Census Bureau reports that the median household income is approximately $83,730. Some experts suggest that earning roughly double the median—around $167,460—could be a benchmark for upper-class status.

To break into the top 5% of earners nationwide, however, you’d need an income of about $336,000. And for the ultra-elite top 1%? You’d have to earn at least $731,000 per year, according to recent analyses.