Millions died, but trillions by the nation's wealthiest as the worst pandemic in modern memory gave way to one of the biggest wealth booms in U.S. history.
According to Federal Reserve data analyzed by CNBC, the top 1% gained $6.5 trillion in wealth from equities and mutual funds during the pandemic. 70% of that wealth came from stocks, amounting to a staggering $4.5 trillion.
The same 1% now controls a record 32% of all household wealth, a new record. The wealthiest 10% now controls a record 89% of all U.S. equities. Although the needle hasn't moved much, as prior to the pandemic, the top 10% held 88% of all stocks.
What's more, The Street reports that the same top 10% now own 45% of all real estate, 54% of all pension entitlements, 89% of all private enterprises, and 34% of all consumer goods.
The realities of such data sharply contrast with most Americans' expectations about economic inequity. According to The Tampa Bay Times, most people think the richest 20% hold 60% of the nation's wealth, saying they would like that figure to be closer to 30%. But what's more striking is that those surveyed thought the poorest 20% held 4% of household wealth, when in reality, they hold but 0.1% of it.
"The top 1% own a lot of stock, the rest of us own a little," said Steven Rosenthal, senior fellow, Urban-Brookings Tax Policy Center, told CNBC.
The Fed data undercuts notions that apps like Robinhood (NASDAQ: HOOD) would somehow democratize profits. The app added roughly 10 million new traders during the pandemic, but the average size of these accounts is $4,500, Rosenthal points out.
"Many of the younger investors also bought in at higher prices, compared to bigger investors who have been in the market for years and see larger gains," Rosenthal added.
CNBC also points out that many retail traders aim to reap short-term gains based on fleeting technical indicators rather than investing for the long haul, potentially limiting their returns.
The data evinces such a pattern; the top 10% saw the value of their portfolios rise by 43% during the pandemic, while the remaining 90% only realized gains of 33%.
Meanwhile, simple math dictates that those who control 89% of the stock market will gain the most, regardless of how many smaller players enter the market.
On the same day of CNBC's report, Inequality.org, a left-leaning economic advocacy group reported that the nation's 745 billionaires have pulled in $2.1 trillion since March 18, 2020. The organization points out that those gains could cover 60% of the cost of Joe Biden's Build Back Better initiative.
Meanwhile, on Capitol Hill, the "Billionaires Income Tax," currently being spearheaded by Senator Ron Wyden (D-OR) faces an uphill battle, as it would require unanimity from Senate Democrats to advance.
The proposal would tax billionaires based on their yearly wealth increases, just as workers pay higher taxes when their wages go up. President Joe Biden signaled support for the policy to reporters last month.
"Look, I support a lot of these proposals. We don't need all of the proposals I support to pay for this," said Biden, stressing that many options were on the table to ensure that all Americans pay their "fair share."