By Claire Moraa
- The growth of millionaires in the U.S. over the past five years outpaces China’s growth rate by double
- Americans possessing liquid investible assets exceeding $1M has surged by 62% in the last decade, exceeding 5.5 million individuals
The U.S has now taken over the number one spot from China leading with the highest number of millionaires and billionaires. Currently, the U.S has 788 billionaires and 9,850 centi-millionaires while China has 305 billionaires and 2,352 centi-millionaires. These figures have catapulted the U.S. to greater heights and is now home to 37% of the world’s millionaires. This further solidifies its position as a hub for wealth accumulation and economic opportunity.
Why This Matters: The landscape of America’s millionaires and billionaires did not increase overnight. This has definitely been a work in progress with technological advancements, demographic shifts and global dynamics. However, we cannot afford to ignore the millionaire exodus from China. In 2023, at least 13,500 millionaires left China and 2,200 joined U.S. This represents 16% of the elite group and an extra 3.500 are expected to come in by the end of 2024. The effects of Covid-19 may have slowed down things in China but worked in favor of the U.S.
But why U.S? Almost everyone speaks of the American dream. But beyond the dream, the U.S. has a robust and resilient economy. It has been a global economic powerhouse for decades serving as a financial center with well-developed capital markets, leading banks, and investment opportunities. This combination of factors serve as a key destination for high-net-worth individuals from both within and outside the country who seek to take advantage of the economic opportunities available to grow their wealth and expand their financial portfolios.
And it’s not just the wealthy individuals who benefit. The presence of millionaires and billionaires can have a positive impact on the economy. Their wealth provides capital for investments, job creation, and economic growth. They often establish businesses, fund startups, and make substantial contributions to research and development, driving innovation and driving economic advancement.
Situational Awareness: There’s a market shift happening and it seems China might have to take a back seat. The U.S is quickly picking up the slack and establishing its position as the dominant market. However, this substantial growth also underscores the need to address wealth inequality and ensure that the benefits of such growths are shared more equitably across society. Striving for inclusive economic policies and opportunities for upward mobility can help ensure a more balanced distribution of wealth and promote social cohesion.
CBX Vibe: “Billionaire” Travie McCoy, Bruno Mars
