More On Average Real Net Worth of U.S. Households (Don Boudreaux, March 19, 2026, Cafe Hayek)
In earlier posts I’ve reported on data that belie the assertion that U.S. trade deficits necessarily drain wealth from the U.S. Here I report such data that are more complete – specifically, I count as part of Americans’ liabilities not only our private debt but also that portion of federal-, state-, and local-government debt for which the average American household is liable. Here are the conclusions, with all dollars converted into 2025$ using this personal-consumption-expenditure deflator.
In Q3 2025 (the latest date for which all relevant data are available), the average real net worth of U.S. households – taking account of all outstanding debt issued by federal, state, and local governments – was $1,031,144.
In 2001 (Q3), the quarter before China joined the World Trade Organization, the average real net worth of U.S. households was $583,989.
In 1993 (Q4), the quarter before NAFTA took effect, the average real net worth of U.S. households was $424,630.
At the end of 1975 – that is, in Q4 1975 – the last year the U.S. ran an annual trade surplus, the average real net worth of U.S. households was $339,074.
Therefore, in Q3 2025, the average real net worth of U.S. households was:
– 77% higher than it was in 2001
– 143% higher than it was in 1994
– 204% higher than it was in 1975.