Wealth Gap Widens as Pandemic Disparities Persist
New Fed report shows wealth gap between older and younger Americans has grown since the pandemic.
2 min read
A new report by the Federal Reserve reveals that the wealth gap in the United States has continued to widen since the onset of the pandemic, with affluent Americans seeing significant gains while younger generations face declining net worth.
Age-Based Wealth Disparities
According to the Federal Reserve’s 2025 Survey of Consumer Finances, the median net worth of families rose by 2% to nearly $216,000 between 2022 and 2025. However, the median net worth of individuals under the age of 35 dropped by 23%, falling to around $33,000. In contrast, the median net worth of those aged 75 or older increased by 37%, reaching approximately $504,900.
Other age groups also saw mixed results, with those aged 45 to 54 and 65 to 74 experiencing declines in net worth of 6% and 4%, respectively. Meanwhile, those aged 35 to 44 and 55 to 64 saw modest increases of 5% and 3%, respectively.
Market Participation and Stock Growth
The report highlights the role of stock market participation in these wealth disparities. Participation in the stock market declined from 58% in 2022 to 56% in 2025, primarily due to lower engagement from those outside the top 10% income bracket. Despite this, the S&P 500 index rose by 78% from 2023 to 2025.
Broader Economic Trends
The findings align with a separate study by crypto casino BC Game, which found that the costs of essential items like used cars, college education, housing, weddings, and childcare have consistently outpaced wage growth since 1985.
These economic trends have become a focal point as Democrats and Republicans prepare for the November midterm elections. Rising concerns among younger generations about the current economic order could significantly influence the political landscape.
Political and Social Implications
A CBS News poll indicates a slight decline in support for capitalism among Americans under the age of 30, from 52% to 48%, while support for socialism rose from 19% to 21%. However, experts suggest the increased support for socialist ideas is more about frustration with the current economic status quo rather than a shift toward full-blown socialism.
Source: Daily Caller
