By Claire Moraa
- Wealthy individuals in the U.S. are moving their assets to offshore accounts due to Trump policies
- 10% of the richest individuals in the U.S. own the 70% of the country’s total wealth
High-net worth individuals have had a busy year from seeking greener pastures and now, they’re looking for new homes for their assets. Wealthy Americans are opening Swiss bank accounts due to fears related to the Trump administration’s policies. If the government introduces capital controls, Swiss bank accounts or other offshore accounts become an option. Affluent individuals may attempt to diversify their assets and protect their wealth from potential devaluation or confiscation.
Why This Matters: In any economic turmoil, you can always expect the ultra-wealthy to shield their assets from regulatory constraints and preserve their financial independence and security. Unlike the poor who will be left scrambling to afford basics, this group of people are always after their interests. And while they may seem selfish, their response to the situation is valid. If the move continues, global confidence in the U.S. dollar will shrink, there will be a reduced tax base and a slowdown in domestic investments. In perspective 1% of the wealthy in U.S. control at least $45 trillion. Another 10% of these rich individuals make up at least 70% of the country’s total wealth.
Opening Swiss bank accounts could just be the start. This could attract other wealthy individuals and the phenomenon of de-Americanization among wealthy investors might not seem like a distant dream. The lack of confidence in the stability and long-term security of the U.S. economy and financial markets is dangerous and if this trend continues, the ripple effects of political factors on global economic behavior could be dire.
What’s Next: There’s more to the movement of assets into Swiss accounts. It is a sign that the U.S. hasn’t taken time to address its policies and trust is slowly eroding from its citizens. It is the government’s job to cultivate trust and transparency especially on the financial front to ensure individuals feel safe with their assets and investments. The longer this goes unaddressed, the higher the chances of this evolving into a longer-term erosion of economic power and domestic investment.
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