How America’s Rich Got Richer — And Why That’s Not a Bad Thing

How America’s Rich Got Richer — And Why That’s Not a Bad Thing

Back in 1982, if you were one of the richest people in America, chances are you didn’t earn your wealth — you inherited it.Fast forward to 2020, and the story has flipped. Of the 100 richest Americans, only 27 inherited their fortunes. The rest? They built them.

We’re Not Seeing Fewer Heirs — We’re Seeing More Builders

It’s not that inheritance went away (inheritance taxes have actually gone down). It’s that more people are making their own fortunes — and making them faster than ever before.

Today, the new wealth is being created in two main ways:

  • 75% by starting companies

  • 25% by managing investments

In 1982, there were zero fund managers in the top 100. By 2020, there were 17. But the real surge? Entrepreneurs.

The Rise of the Founder Class

Of the 73 new fortunes in 2020, 56 came from startups — either founders, early employees, or spouses of founders.

What’s driving this boom?

In a word: technology.

Not just “tech” in the Silicon Valley sense — think broader. Amazon might be retail, Tesla makes cars, but both are built on technology, innovation, and speed. These companies don’t win because they have the best real estate. They win because they’re better at building and scaling new ideas.

Eight out of the ten richest Americans in 2020 got there by building tech-driven businesses. And that’s a big shift from 1982, when oil and real estate were the dominant wealth engines.

Starting Companies Isn’t New — It’s a Return to Normal

Here’s what most people miss: 1982 wasn’t normal. It was the outlier.

Go back even further — to 1892 — and you'll see a landscape that looks a lot like today. Most millionaires then were self-made. They got rich by riding waves of new technology: steel, railroads, and mass production.

The real anomaly was the mid-20th century, when a few massive corporations dominated the economy. Starting your own company wasn’t just hard — it was almost impossible. Climbing the corporate ladder was the only prestigious path to wealth.

That changed in the 1970s. Deregulation and the rise of microelectronics cracked the ice. Startups were no longer confined to the edges — they began disrupting the very core of the economy.

Why It’s Easier Than Ever to Build Wealth

What’s fueling this new wave of founders?

  • It’s cheaper to start a company than ever before.

  • It’s faster to grow one, thanks to better tools and digital distribution.

  • It’s more socially accepted — parents no longer panic when their kids skip law school to launch a startup.

  • Investors need founders more than founders need investors.

This perfect storm means more people are starting companies, raising money on better terms, and creating businesses that scale at lightning speed.

Faster Growth = Bigger Fortunes, Sooner

Look at the timeline to $1 billion in revenue:

  • IBM: 45 years

  • HP: 25 years

  • Microsoft: 13 years

  • Today’s fastest startups: 7-8 years

The math is simple. Faster growth means bigger valuations — and bigger paydays for founders.

Inequality Is Rising — But It’s Not All Bad News

Yes, the wealth gap is growing. But it’s not just because the rich are hoarding more — it’s because more people are creating more value faster than ever before.

What we’re seeing today isn’t a fluke or a glitch in the system. It’s the return of a long-standing trend: ambitious people building bold companies that change the world — and getting rich in the process.

In a world where the richest people earn their fortunes by building new things, not inheriting old ones, maybe we’re not moving backwards at all. Maybe we’re finally getting back on track.