When I am critical of the current economic system in the United States I am often countered by the argument that the system is good because most Americans own stock. Some also say that this show how anyone can  work their way towards wealth by investing.

It is true that most Americans own stock. At 51.9% this just barely suffices to make the claim true. But the positive view is a matter of perspective as this also means 48.1% of Americans do not own stock. To use an analogy, if someone said that most passengers survived a crash, then that sounds good: while the crash was bad, at least most people survived. But if you inquired more and found that 52% of the passengers survived, sounds less good since as 48% did not. As such, some stock rhetorical techniques are in play here.

One is to use the vagueness of “most.” Psychologically, people tend to think in terms of “most” referring to a significant majority rather than just barely over half. As such, it is wise to consider the numbers rather than uncritically accepting “most.”

Another technique is the emphasis. When numbers are used, presenting them with the positive or negative statement can influence people. So, saying 52% of Americans own stocks makes it sound good. But saying 48% of Americans do not own stocks makes it sound bad. Looked at neutrally, 48% is a significant lack. After all, if 48% of Americans lacked shelter or adequate food, we would hardly rejoice that 52% had those things. So, gushing about 52% of Americans owning stock is a bit absurd.

Another rhetorical tool in use here is leaving out critical information. By simply asserting that most Americans own stock, this suggests most Americans are doing well. While no one thinks that the average American is crushing the stock market the way Bill Gates, Trump, Elon Musk or Jeff Bezos is; this language just lumps all stock ownership together without considering the distinctions. To use an analogy, it is true that most Americans own vehicles, but there is a huge difference between someone who has an old car and someone who owns yachts and rockets.

While there are some disputes about the exact percentages, the value of stock owned is rather like athletic talent: it is unevenly divided, and a small percentage have most of it. In the case of stocks, 10% of households are estimated to own 84-90% of the value of stocks. 1% of the population is estimated to own about 50% of the value of stocks. As such, while about 52% of Americans own stocks, the 1% own the lion’s share of the value of these stocks. For those even vaguely familiar with the American economy, this makes sense: why would the stock market be different from any other aspect of the economy?

As such, while most Americans own stocks, this does little to refute concerns about the imbalance and unfairness of the current system. In fact, looking at the numbers reveals stock ownership as another example of the imbalance and unfairness of the existing system.