Do You Need Business Assets to Be Rich?

Abstract

The one percent are extremely powerful in the United States, and business assets are an important component of the wealth of these households. The authors show that business assets are an important component of the wealth portfolios of the one percent. In 1989, approximately 40 percent of households in the one percent had sufficient business assets to be in the one percent on the basis of those assets alone. By 2019, about 50 percent of households in the one percent had sufficient business assets to be in the one percent on the basis of those assets alone. For nearly 20 percent of households, business assets are necessary to be in the one percent. The findings suggest that business assets are critical to creating and maintaining wealth inequality in the United States and underscore the important role that starting and growing businesses can play in pushing households into top wealth positions.