Connect with us

Business

‘Something weird’s going on’ in the economy as 6 new economic classes take shape, says New York Times bestselling author

Published

on


Nick Maggiulli is juggling more than spreadsheets these days. He’s chief operating officer at Ritholtz Wealth Management, but he’s also a blogger, and now a two-time author thanks to his latest book, “The Wealth Ladder,” which quickly shot to New York Times bestseller status. Through his many efforts, Maggiulli has found himself at the forefront of a conversation increasingly relevant to Americans: what it means to have wealth, and how that meaning is rapidly evolving. “Something weird’s going on,” he told Fortune in an interview.

Maggiulli’s insights are rooted in data and everyday observation, but he believes the upper middle class is going through an “existential crisis,” as he noted on his blog “Of Dollars and Data.” He talked to Fortune about what he thinks is going on: “The economy wasn’t built to handle this many people with this much money,” he said, hinting at his research on what he calls the new economic classes of the United States.

In “The Wealth Ladder,” Maggiulli proposes a new, data-backed framework for thinking about affluence. It’s a much bigger topic than just Level 4. He divides American households into six wealth levels, ranging from under $10,000 (Level 1) to $10 million-plus (Level 5 and beyond). The most populous segment is Level 3—those with $100,000 to $1 million in wealth—but he says that Level 4, the so-called “upper middle class,” is notable for its rapid growth and unique challenges.

Maggiulli’s analysis shows the angsty, existential Level 4 was just 7% of the country in in 1989, but as of 2022/23, that had shot all the way up to 18%. Admittedly, inflation means that a millionaire in the late ’90s would have a net worth of around $2 million, also as of 2022/23. But still, he says, this economic class is much bigger than it used to be, especially since the pandemic, and he thinks it’s “starting to have all these impacts throughout the rest of the economy.”

The existential crisis of the upper middle class in the 21st century

This demographic expansion, Maggiulli says, has sparked unexpected economic side effects, from crowded airport lounges to bidding wars for housing and luxury amenities. ““The economy wasn’t built to handle this many people with this much money,” he observes, linking “scarce resource” frustrations to the surging population of affluent Americans. “They’re all competing for a small pool of resources,” he says.

The weirdest thing, Maggiulli says, is that these people are objectively very successful. “They’ve done well in life … but on a relative basis in the United States, the competition for these higher-end goods is very high, so now it feels like we’re all canceling each other out with all this extra wealth.” Wealthy level 4 Americans could always move somewhere else, where their money would go much further, but they are mostly staying in the U.S., where they don’t feel like the millionaires that they’ve become.

It really is different from the late ’90s to now, Maggiulli says, adding that in terms of purchasing power, an American with a net worth of $1 million back then would rank in the top 5% of wealth, whereas that status in the 2020s belongs to someone worth $4 million. “There’s so much wealth being created that the upper end is seeing this competition like never before,” he adds.

UBS Global Wealth Management noticed a similar trend in its 2025 edition of the Global Wealth report, seeing a dramatic rise in the “everyday millionaire,” or EMILLI. At the dawn of the millennium, there were just over 13 million EMILLIs worldwide, UBS found, but that number had shot up to nearly 52 million—a more than fourfold increase in less than 25 years. Even after adjusting for inflation, the number of EMILLIs has more than doubled in real terms since 2000. “There’s a good portion of [these Level 4, everyday millionaires] that feel like they don’t have enough,” Maggiulli told Fortune, “and they feel like they’re just getting by, even though statistically they’re in the top 20% of U.S. households.”

Maggiulli’s remarks recall those of Charlie Munger, Warren Buffett’s long-time right-hand man at Berkshire Hathaway, who died in 2024. The previous year, in his last appearance at the annual meeting for his newspaper holding company, Daily Journal, Munger sounded a similar tune about things being ever better but people feeling ever worse. “People are less happy about the state of affairs than they were when things were way tougher,” Munger said, then made a striking comparison. “It’s weird for somebody my age, because I was in the middle of the Great Depression when the hardship was unbelievable.” Munger said he was powerless to change how unhappy people felt “after everything’s improved by about 600% because there’s still somebody else who has more.”

The importance of assets

Maggiulli’s analysis extends to the composition of wealth across classes: “The poor own cars, the middle class own homes, and the rich own businesses.” He stresses the “rich” in America tend to hold assets like businesses and stocks, not just real estate or commodities. To truly shift up levels, the kind of assets you own really matters.

Nick Maggiulli's asset breakdown by wealth level.
What the different classes in America own.

Nick Maggiulli

Maggiulli told Fortune about the long-anticipated “Great Wealth Transfer,” when baby boomers pass on their $124 trillion fortunes to the Gen Xers and millennials now in or entering midlife. As baby boomers age, their assets are expected to flow into Gen X and eventually millennials, a process he frames as “very normal.” But he cautions that much of this wealth is tied up in illiquid assets like real estate, potentially distorting Americans’ perception of their own affluence.

He’s also candid about what he calls the “broken housing market.” Even affluent adults are forced into renting more often than not: In fact, Maggiulli’s research shows there have never been so many millionaire renters before. Maggiulli says if it seems like economic conditions have driven many Americans to postpone homeownership, he would know, because he’s one of them. “What that means for me personally is that I’m just gonna be renting for a lot longer,” Maggiulli tells Fortune, “because it doesn’t make sense to buy, especially where rates are, prices, everything.” The housing market as currently constructed just “doesn’t add up” for his situation.

For Maggiulli, the key takeaway is adaptability. He analogizes personal finance to fitness: “You can imagine a fitness instructor giving different advice to someone who’s morbidly obese versus someone who’s a well-trained athlete.” Likewise, financial strategies must shift as individuals progress up the “wealth ladder.” This particular ladder isn’t one that you’re meant to keep climbing forever, but a very large ladder with a lot of plateaus on it, some where you stay forever. He says you need to step back and reassess: “Do I need to keep climbing? Is this right for me?”

Alex Bryson, professor of Quantitative Social Science at University College London, told Fortune something similar in an interview about his research into 21st century labor markets, social mobility, and young workers. “People at that time in their lives, when they’re looking to build careers and move on and acquire property and, you know, all the the ladder-type things … it feels as if, perhaps, for some of them, somebody’s removed some of the rungs on that ladder.” Bryson added that “we haven’t necessarily got the same career structures and patterns” in the current economy as in the past.

Maggiulli says he’s not advocating through his book for people to choose one particular path or another, but to be aware of their wealth and their trajectory. “I think a lot of people get there, and they say, ‘Wait, do I want to keep going down this path? Or maybe I can take my foot off the gas and choose a different path where money is not the only thing I’m focusing on.’”

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. 



Source link

Continue Reading

Business

Epstein grand jury documents from Florida can be released by DOJ, judge rules

Published

on



A federal judge on Friday gave the Justice Department permission to release transcripts of a grand jury investigation into Jeffrey Epstein’s abuse of underage girls in Florida — a case that ultimately ended without any federal charges being filed against the millionaire sex offender.

U.S. District Judge Rodney Smith said a recently passed federal law ordering the release of records related to Epstein overrode the usual rules about grand jury secrecy.

The law signed in November by President Donald Trump compels the Justice Department, FBI and federal prosecutors to release later this month the vast troves of material they have amassed during investigations into Epstein that date back at least two decades.

Friday’s court ruling dealt with the earliest known federal inquiry.

In 2005, police in Palm Beach, Florida, where Epstein had a mansion, began interviewing teenage girls who told of being hired to give the financier sexualized massages. The FBI later joined the investigation.

Federal prosecutors in Florida prepared an indictment in 2007, but Epstein’s lawyers attacked the credibility of his accusers publicly while secretly negotiating a plea bargain that would let him avoid serious jail time.

In 2008, Epstein pleaded guilty to relatively minor state charges of soliciting prostitution from someone under age 18. He served most of his 18-month sentence in a work release program that let him spend his days in his office.

The U.S. attorney in Miami at the time, Alex Acosta, agreed not to prosecute Epstein on federal charges — a decision that outraged Epstein’s accusers. After the Miami Herald reexamined the unusual plea bargain in a series of stories in 2018, public outrage over Epstein’s light sentence led to Acosta’s resignation as Trump’s labor secretary.

A Justice Department report in 2020 found that Acosta exercised “poor judgment” in handling the investigation, but it also said he did not engage in professional misconduct.

A different federal prosecutor, in New York, brought a sex trafficking indictment against Epstein in 2019, mirroring some of the same allegations involving underage girls that had been the subject of the aborted investigation. Epstein killed himself while awaiting trial. His longtime confidant and ex-girlfriend, Ghislaine Maxwell, was then tried on similar charges, convicted and sentenced in 2022 to 20 years in prison.

Transcripts of the grand jury proceedings from the aborted federal case in Florida could shed more light on federal prosecutors’ decision not to go forward with it. Records related to state grand jury proceedings have already been made public.

When the documents will be released is unknown. The Justice Department asked the court to unseal them so they could be released with other records required to be disclosed under the Epstein Files Transparency Act. The Justice Department hasn’t set a timetable for when it plans to start releasing information, but the law set a deadline of Dec. 19.

The law also allows the Justice Department to withhold files that it says could jeopardize an active federal investigation. Files can also be withheld if they’re found to be classified or if they pertain to national defense or foreign policy.

One of the federal prosecutors on the Florida case did not answer a phone call Friday and the other declined to answer questions.

A judge had previously declined to release the grand jury records, citing the usual rules about grand jury secrecy, but Smith said the new federal law allowed public disclosure.

The Justice Department has separate requests pending for the release of grand jury records related to the sex trafficking cases against Epstein and Maxwell in New York. The judges in those matters have said they plan to rule expeditiously.

___

Sisak reported from New York.



Source link

Continue Reading

Business

Miss Universe co-owner gets bank accounts frozen as part of probe into drugs, fuel and arms trafficking

Published

on



Mexico’s anti-money laundering office has frozen the bank accounts of the Mexican co-owner of Miss Universe as part of an investigation into drugs, fuel and arms trafficking, an official said Friday.

The country’s Financial Intelligence Unit, which oversees the fight against money laundering, froze Mexican businessman Raúl Rocha Cantú’s bank accounts in Mexico, a federal official told The Associated Press on condition of anonymity because he was not authorized to comment on the investigation.

The action against Rocha Cantú adds to mounting controversies for the Miss Universe organization. Last week, a court in Thailand issued an arrest warrant for the Thai co-owner of the Miss Universe Organization in connection with a fraud case and this year’s competition — won by Miss Mexico Fatima Bosch — faced allegations of rigging.

The Miss Universe organization did not immediately respond to an email from The Associated Press seeking comment about the allegations against Rocha Cantú.

Mexico’s federal prosecutors said last week that Rocha Cantú has been under investigation since November 2024 for alleged organized crime activity, including drug and arms trafficking, as well as fuel theft. Last month, a federal judge issued 13 arrest warrants for some of those involved in the case, including the Mexican businessman, whose company Legacy Holding Group USA owns 50% of the Miss Universe shares.

The organization’s other 50% belongs to JKN Global Group Public Co. Ltd., a company owned by Jakkaphong “Anne” Jakrajutatip.

A Thai court last week issued an arrest warrant for Jakrajutatip who was released on bail in 2023 on the fraud case. She failed to appear as required in a Bangkok court on Nov. 25. Since she did not notify the court about her absence, she was deemed to be a flight risk, according to a statement from the Bangkok South District Court.

The court rescheduled her hearing for Dec. 26.

Rocha Cantú was also a part owner of the Casino Royale in the northern Mexican city of Monterrey, when it was attacked in 2011 by a group of gunmen who entered it, doused gasoline and set it on fire, killing 52 people.

Baltazar Saucedo Estrada, who was charged with planning the attack, was sentenced in July to 135 years in prison.



Source link

Continue Reading

Business

Elon Musk’s X fined $140 million by EU for breaching digital regulations

Published

on



European Union regulators on Friday fined X, Elon Musk’s social media platform, 120 million euros ($140 million) for breaches of the bloc’s digital regulations, in a move that risks rekindling tensions with Washington over free speech.

The European Commission issued its decision following an investigation it opened two years ago into X under the 27-nation bloc’s Digital Services Act, also known as the DSA.

It’s the first time that the EU has issued a so-called non-compliance decision since rolling out the DSA. The sweeping rulebook requires platforms to take more responsibility for protecting European users and cleaning up harmful or illegal content and products on their sites, under threat of hefty fines.

The Commission, the bloc’s executive arm, said it was punishing X because of three different breaches of the DSA’s transparency requirements. The decision could rile President Donald Trump, whose administration has lashed out at digital regulations, complained that Brussels was targeting U.S. tech companies and vowed to retaliate.

U.S. Secretary of State Marco Rubio posted on his X account that the Commission’s fine was akin to an attack on the American people. Musk later agreed with Rubio’s sentiment.

“The European Commission’s $140 million fine isn’t just an attack on @X, it’s an attack on all American tech platforms and the American people by foreign governments,” Rubio wrote. “The days of censoring Americans online are over.”

Vice President JD Vance, posting on X ahead of the decision, accused the Commission of seeking to fine X “for not engaging in censorship.”

“The EU should be supporting free speech not attacking American companies over garbage,” he wrote.

Officials denied the rules were intended to muzzle Big Tech companies. The Commission is “not targeting anyone, not targeting any company, not targeting any jurisdictions based on their color or their country of origin,” spokesman Thomas Regnier told a regular briefing in Brussels. “Absolutely not. This is based on a process, democratic process.”

X did not respond immediately to an email request for comment.

EU regulators had already outlined their accusations in mid-2024 when they released preliminary findings of their investigation into X.

Regulators said X’s blue checkmarks broke the rules because on “deceptive design practices” and could expose users to scams and manipulation.

Before Musk acquired X, when it was previously known as Twitter, the checkmarks mirrored verification badges common on social media and were largely reserved for celebrities, politicians and other influential accounts, such as Beyonce, Pope Francis, writer Neil Gaiman and rapper Lil Nas X.

After he bought it in 2022, the site started issuing the badges to anyone who wanted to pay $8 per month.

That means X does not meaningfully verify who’s behind the account, “making it difficult for users to judge the authenticity of accounts and content they engage with,” the Commission said in its announcement.

X also fell short of the transparency requirements for its ad database, regulators said.

Platforms in the EU are required to provide a database of all the digital advertisements they have carried, with details such as who paid for them and the intended audience, to help researches detect scams, fake ads and coordinated influence campaigns. But X’s database, the Commission said, is undermined by design features and access barriers such as “excessive delays in processing.”

Regulators also said X also puts up “unnecessary barriers” for researchers trying to access public data, which stymies research into systemic risks that European users face.

“Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU. The DSA protects users,” Henna Virkkunen, the EU’s executive vice-president for tech sovereignty, security and democracy, said in a prepared statement.

The Commission also wrapped up a separate DSA case Friday involving TikTok’s ad database after the video-sharing platform promised to make changes to ensure full transparency.

___

AP Writer Lorne Cook in Brussels contributed to this report.



Source link

Continue Reading

Trending

Copyright © Miami Select.