The pandemic caused a dramatic increase in the wealth owned by the top 1%, as wealth inequality between billionaires and the rest of the population continued to intensify in 2021.

According to recent data from the Federal Reserve, the top 1% increased their overall wealth by $6.5 trillion in 2021. By the end of Q4 2021, the one percent’s wealth reached $45.9 trillion and their property wealth increased by over $12 trillion, according to the latest report on household wealth.

The data showed that the wealthiest Americans owned an astounding 32.3% of the nation’s wealth by that time, while the share of wealth owned by the bottom 90% of Americans dropped to 30.2% from 30.5%.

Wealth inequality in 2021 was driven by both private businesses and stocks, with $4.3 trillion of gains by the 1% coming from corporate equities and mutual fund shares.

While overall wealth continues to grow across all socioeconomic statuses, those in the higher to upper-middle socioeconomic statuses have seen greater increases than the rest.

“The pandemic wealth boom certainly ranks at or near the top of all the wealth booms over the last 40 years,” Edward Wolff, a professor of economics at New York University, told CNBC.

On Thursday, President Joe Biden proposed a minimum tax of 20% on the income of households worth over $100 million, though it is unclear how this will help tackle some of the wealth inequality issues.

Oxfam said the wealth of the world's 10 richest men jumped from $700 billion to $1.5 trillion during the pandemic
Oxfam said the wealth of the world's 10 richest men jumped from $700 billion to $1.5 trillion during the pandemic AFP / Ozan KOSE
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