When George Washington was exiting the presidency in 1797, he delivered his Farewell Address to the nation. He didn’t deliver it as a speech; rather, newspapers printed it, and, in some cases, it was read to the public by officials. In it, Washington warned of “foreign entanglements.”
When Dwight Eisenhower left office in 1961, he warned of the growth of the “military industrial complex.” I watched his address with my father on our small, black and white television.
Wednesday evening, five days before leaving office, President Joe Biden delivered his Farewell Address. In it, he also issued a warning. His was a warning of “a dangerous concentration of power in the hands of a very few ultrawealthy people.” He said:
“Today, an oligarchy is taking shape in America of extreme wealth, power, and influence that literally threatens our entire democracy, our basic rights and freedoms, and a fair shot for everyone to get ahead.”
Americans are being buried under an avalanche of misinformation and disinformation, enabling the abuse of power… Social media is giving up on fact checking. The truth is smothered by lies told for power and for profit.”
As if to prove his point about social media, at the very moment he was delivering those lines, Steven Cheung, Donald Trump’s new Director of Communications, and Karoline Leavitt, his incoming Press Secretary, were sharing posts on X that Biden’s address was pre-recorded (it was not), because his staff did not trust his ability to deliver a live presentation. Neither Cheung nor Leavitt could resist the temptation to get in one more cruel, knife-twisting lie. When these folks were children, they probably cut the legs off frogs to ogle and laugh at what happened when the little crippled critters tried to jump. You might want to remember this, because these are the people who will be briefing the White House press corps every day for the next four years.
Regardless of the puerile instincts of the Trump team, President Biden’s warning about the rise of the ultrawealthy should be heeded.
Federal Reserve data show the wealthiest 0.1% of the country hold more than five times the wealth of the bottom 50% combined.
Here is a chart from the Federal Reserve’s Board of Governors depicting Americans’ wealth growth since 1989. As you look at it, keep in mind that the very tiny, hard to see, yellow bottom group represents the total wealth owned by the bottom 50% of American households. The darker green section immediately above the yellow is the wealth owned by the 50th to the 90th percentiles. The light blue, light green, and dark green at the top represent everyone in the top 10%.
To make things even clearer, I have taken data from the first quarter of three years, 1990, 2000, and 2024. I have split the data into two categories, household income and household wealth, because income is what is earned in one year, but wealth is the accumulated money and assets amassed over time. For income distribution I have compared the top 1% to the bottom 60%; for the wealth calculation, I compare the top 1% to the bottom 50%. Here is what those data show:
As you can see, since 1990, the top 1% now has 50% more of the nation’s wealth than it had in 1990 and 37% more of its income. Conversely, the income and wealth of the comparison groups has been declining for nearly 35 years.
Drilling down even deeper, and mindful that Inauguration Day in 2025 also falls on the Martin Luther King national holiday, I examined wealth owned by Black people in America since 1990.
According to the 1990 census, approximately 12.1% of the US population was Black. According to Federal Reserve data, they owned a ridiculously disproportionate 4% of the nation’s wealth at the time. By 2024, the Black population had increased to 13.7%, but their share of the nation’s wealth had declined even more, to 3.3%. There are wealthy Black Americans, but their numbers are few. What would Martin Luther King be saying about this? More to the point, what would he be doing about it?
If nothing is done about this long-term trend in wealth distribution, it will continue, and, make no mistake about this — it will get worse. Right now, with Donald Trump’s embrace of (should we say conquest of?), America’s oligarchs, you would likely not lose money betting on the trend to continue for at least four years. At some point, however, Americans will have to decide if this is the picture of wealth distribution in the nation they want. If that happens, will the situation have grown so dire it will be beyond reversing?
Last Sunday, on CBS’s Sunday Morning, Leslie Stahl interviewed Jamie Diamond, CEO of JP Morgan, probably the most successful and influential bank in the nation. Stahl asked Diamond his thoughts on the current chasm existing between the top 1% and the rest. He replied he did not have a problem with the wealth growth of the 1%, but he regretted the bottom 30% did not similarly benefit. Swell.
I have only one question for the remarkably capable Mr. Diamond, one I wish Ms. Stahl had asked: What are you going to do about it?