From Inheritance to Innovation: The Shifting Sands of American Wealth
This article analyzes the dramatic shift in the composition of America's wealthiest individuals from 1982 to 2020. In 1982, inherited wealth dominated, while by 2020, only about a quarter of the top 100 fortunes were inherited, with most stemming from founding tech companies or successful investment management. This change isn't due to increased inheritance taxes but to a surge in wealth creation through entrepreneurship. Tech companies have become the dominant source of new wealth, succeeding not solely through deal-making but technological prowess. This contrasts sharply with the 1982 landscape dominated by oil and real estate. The article argues that mid-20th-century oligopolies and high taxes stifled entrepreneurship, while technological advancements and deregulation from the 1970s onward fueled its resurgence, making entrepreneurship the primary route to wealth accumulation.