How Much Would The Average American Have If Wealth Was Distributed Evenly?

The numbers would solve a lot of problems, but create others.

Research shows that the average American would have a six- to seven-figure income if the nation’s wealth were distributed equally.

Nearly two-thirds of America’s private wealth is concentrated among the top 10%, leaving just one-third for the remaining 90% of the population. But research suggests that if wealth were distributed equally, each person would receive about $471,465—$942,930 per couple and $1.89 million for a family with two children, Upworthy reports.

Although the U.S. holds the world’s largest amount of privately held wealth, $160.35 trillion, many Americans live their lives in financial stress. In addition, 68% lack enough savings to retire, 56% struggle with the cost of living, and 45% worry about debt. Much of the financial strain stems from the heart of America’s wealth being held by a small segment of the population.

However, if the nation’s wealth were distributed evenly among the 340 million people living in the United States, it would be a life-changing boost for the vast majority of Americans. The average family could easily pay off their mortgage, save for a comfortable retirement, and fund both children’s college or trade school. There would be plenty to cover the cost of groceries, afford a car, and go on a regular vacation.

Redistributing America’s wealth is largely a thought experiment. A sudden, drastic redistribution would require liquidating investments to transfer assets, potentially destabilizing the economy. The resulting surge in wealth for many, without a corresponding increase in goods and services, could trigger extreme inflation—similar to how the government stimulus during the COVID-19 pandemic temporarily lowered poverty to a record 7.8% in 2021 but contributed to historic inflation.

Such a shift could discourage work and innovation, and some argue that those with wealth-generating skills would quickly rise to the top again, leaving others behind. Without fundamental changes to the capitalist system, a one-time radical redistribution of wealth likely wouldn’t be sustainable in the long run.

The research highlights the extreme wealth inequality in the U.S., the world’s richest nation. While achieving full income equality may be unlikely, Americans can still make a meaningful impact through targeted measures like stimulus payments, child tax credits, and Universal Basic Income to reduce poverty and improve lives.