1. 1q15 Household Net Worth
Householdnetworthhityetanotherall-timehighin1q15 bothfrom a level perspective andis
approachinglongtermtrend:
As a functionof GDP,householdnetworthbroke outtoa new all-time high:
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
Household Net Worth
Household Net Wort h
2. Wagesalso hitanotherall-time high,fromalevel perspective:
Wages,however,have almostneverbeenlowerasa percentage of GDP:
3.0x
3.2x
3.4x
3.6x
3.8x
4.0x
4.2x
4.4x
4.6x
4.8x
5.0x
Household Net Worth/GDP
HouseholdNetWorth/GDP
0
1,000,000,000,000
2,000,000,000,000
3,000,000,000,000
4,000,000,000,000
5,000,000,000,000
6,000,000,000,000
7,000,000,000,000
8,000,000,000,000
9,000,000,000,000
3/1/1947
8/1/1949
1/1/1952
6/1/1954
11/1/1956
4/1/1959
9/1/1961
2/1/1964
7/1/1966
12/1/1968
5/1/1971
10/1/1973
3/1/1976
8/1/1978
1/1/1981
6/1/1983
11/1/1985
4/1/1988
9/1/1990
2/1/1993
7/1/1995
12/1/1997
5/1/2000
10/1/2002
3/1/2005
8/1/2007
1/1/2010
6/1/2012
11/1/2014
Wages
Wages
3. Expressedasa functionof households,bothnetworthandwages alsoreachednew all-time highin
1q15:
As we can see below,however, networthcontinuestogrow ata far greaterrate than wagessuch that
the multiple betweennetworthandwageshasneverbeengreaterandhaseclipseditspre-recession
level:
0.4x
0.5x
0.5x
0.6x
0.6x
Wages/GDP
Wages/GDP
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1q65
3q66
1q68
3q69
1q71
3q72
1q74
3q75
1q77
3q78
1q80
3q81
1q83
3q84
1q86
3q87
1q89
3q90
1q92
3q93
1q95
3q96
1q98
3q99
1q01
3q02
1q04
3q05
1q07
3q08
1q10
3q11
1q13
3q14
Net Worth and Wages/Household, Level Data
Net Worth/Household Wages/Household
4. The Federal Reserve hasneverworkedsohardtogenerate the wealthfoundthroughoutsociety:
The surge inhouseholdwealthhasnotgeneratedthe consumptionone wouldlikelyexpect:
6.0x
7.0x
8.0x
9.0x
10.0x
11.0x
12.0x 1q65
3q66
1q68
3q69
1q71
3q72
1q74
3q75
1q77
3q78
1q80
3q81
1q83
3q84
1q86
3q87
1q89
3q90
1q92
3q93
1q95
3q96
1q98
3q99
1q01
3q02
1q04
3q05
1q07
3q08
1q10
3q11
1q13
3q14
Net Worth/Wages
Net Worth/Wages
10.0x
20.0x
30.0x
40.0x
50.0x
60.0x
70.0x
80.0x
90.0x
Household Net Worth/Monetary Base
HouseholdNet Wort h/Monetary Base
