Because stock ownership in America is increasingly concentrated among higher income people – with 90% of all stocks owned by the wealthiest 10% – market busts have less negative impact on lower and middle-income families. But stock crashes do not necessarily reduce economic inequality, says Frank Stafford, since during a crash those with less education and smaller portfolios are more likely to sell off their stock and lock in their losses, while bigger and more savvy investors ride it out.

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