Richistan

Richistan by Robert Frank

Category: Current Affairs Grade: B+

This book is almost embarrassing to review. Frank, a Wall Street Journal writer, spent years reporting on the wealthy. He came to the conclusion that the rich (in the U.S. in this book) really live in a different world. He decided to travel through the world and describe the lifestyles he found. His first quick conclusion was that millionaires are a whole lot more prevalent than they used to be (even adjusted for inflation). He divides Richistan in to four different "states" - Lower Richistan ($1-10M net worth), Middle Richistan ($10-100M net worth), Upper Richistan ($100M-$1B) and, of course, Billionaireville ($1B+).

He spends most of time in the last two states and discovers that inflation in those states is dramatically worse than in the "real world". The competition for the best, the most and the biggest keeps the uber-rich continuously spending. The 500 foot yacht is no longer unusual. The 30,000 square foot home is becoming common among this group. On the other hand, the demographics of the group is pretty different than in the past -- people are younger, dress less formally, don't use chauffeurs and, often, keep working long past having "enough" money. Philanthropy has become a more participatory activity with fewer gifts to "name" charities and more do it yourself social investing. The chapter about this actually focuses on an Austinite - Phillip Berber and his Glimmer of Hope Foundation.

Interesting world.