By 2027, Elon Musk is projected to attain trillionaire status, shedding light on the enduring wealth of the wealthy.

According to a recent report from Informa Connect Academy, Elon Musk is projected to become the world's first trillionaire by 2027. Among the world's billionaires, Musk is the closest to the 13-figure mark, and his wealth is steadily increasing.

In September 2020, Musk's net worth was estimated to be around $265 billion, according to the Bloomberg Billionaires Index. By the end of the year, his worth had increased to approximately $167 billion, and at the start of 2020, he was valued at about $28.5 billion.

The primary source of Musk's fortune has been Tesla stock, which experienced a significant increase in value during the Covid-19 pandemic. In January 2020, Tesla stock was trading at approximately $30 per share. By January 2021, the stock had skyrocketed to nearly $300 per share.

According to James Pethokoukis, economic policy analyst for the American Enterprise Institute, the key to becoming extremely wealthy in America is by starting a company and expanding it. The reason for the company's growth is that it produces something valuable that people desire.

Typically, wealthier individuals invest more of their assets in the stock market, while middle-income households invest more in real estate.

Nearly 50% of U.S. stocks are owned by the wealthiest 1% of Americans, while the bottom 50% hold only about 1% of all stocks, as of mid-2024, according to Federal Reserve data.

In 2022, approximately 58% of families owned stock, either directly or through passive investments like retirement accounts.

"According to John Sabelhaus, a fellow at the Brookings Institution, the prices of different types of assets greatly influence wealth inequality. Specifically, he stated that an increase in the stock market will lead to a rise in wealth concentration, thereby exacerbating wealth inequality."

The role of taxation in contributing to wealth inequality is a topic of debate. While some argue that large compensation packages are a reward for creating a successful company, others contend that loopholes in the tax system create an uneven playing field.

"Tax policy changes over the past quarter century have made it increasingly difficult to tax the wealthy, with numerous exclusions and loopholes allowing individuals to avoid paying taxes, according to Sabelhaus."

The income of the ultrawealthy is not as straightforward as that of the average American, who earns their income through trading time and skills for a paycheck, which is taxed based on their earnings.

"If we consider income as the enhancement of our spending power over time, you and I receive paychecks that reflect our earning capacity. However, Musk's compensation package, despite being substantial, only a small portion of it is taxable due to its structure in bonuses and other forms of payment that facilitate tax evasion."

The video above discusses how the wealthy continue to accumulate wealth and its impact on the U.S. economy.