Rising ranks of US rich highlight social dilemma

A booming US economy has led to an explosion in the ranks of the wealthy unseen in a century, creating a surging market for luxury goods as well as a new era of philanthropy, researchers say. But some analysts say the growing ranks of the rich comes at a time of a widening gap with the poor, and highlights dilemmas on social issues such as the minimum wage, executive pay and taxes.

Forbes magazine said the US was home to at least 400 billionaires in 2006. Market research firm TNS concluded in 2005 that at least 8.9 million US households were worth at least one million dollars. This has led to a sizzling market for luxury cars like Maseratis and Porsches, as well as strong sales of yachts and luxury homes. At the same time, some researchers point to a widening rich-poor gap, a topic of heated debate.

Many Americans are unsettled by the rise in new wealth. US corporate chief executives were paid on average 262 times the salary of an average worker last year, an imbalance near an all-time high, according to the labor-oriented Economic Policy Institute (EPI). Representative Barney Frank said part of the Democratic Party agenda will include legislation to boost minimum wages and constrain CEO pay by requiring shareholders to approve exceptional compensation packages.

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