Great News -- Rich Getting Richer

Get out your "The Nation" crying towel, progressives. Fire up the Bob Schrum wing of the DNC. It seems that wealthy people had a very good 2003.

The Wall Street Journal sez: World's Wealthiest People Flocked to Stocks Last Year

The secret of wealth in 2003? Stocks, stocks and more stocks.

According to the latest World Wealth Report, a study conducted by consulting firm Capgemini Group and brokerage house Merrill Lynch & Co. and scheduled for release today, the wealthy last year poured a large portion of their more conservative cash and bond holdings into riskier assets, such as stocks, increasing their fortunes/

In addition to stocks, the world's wealthy also put money into hedge funds, private-equity funds, and collectibles such as art and wine. Real-estate holdings edged up to 17% from 15% in 2003.

The population of people with financial assets of more than $1 million surged by 14% in the U.S. last year and more than 7% globally, according to the report. World-wide, the report found 70,000 "ultra high net worth" individuals -- those with more than $30 million in financial assets.

Larry Kudlow, during the Kudlow & Cramer two-hour tribute to President Reagan, said an interesting thing. In the days of 70% tax rates, the wealthy all had their capital tied up in tax shelters. When the rates were cut, that capital came into the equities markets and created the (repeat after me kids) "Clinton Boom"

Katrina Vanden Heuval notwithstanding, this is great news for everybody.

p.s. Fairness compels me to add that President Clinton’s free trade policies and Chairman Greenspan’s monetary policy did much to perpetuate the Clinton Boom.

Posted by jk at June 15, 2004 08:47 AM