If you're a mere millionaire, you won't be on the Forbes Fortune 400 list, a list of the 400 richest people in the US. It contains only billionaires. You had to be $300 million richer this year than last even to be on it and have a minimum net wealth of $1.3 billion. There may even be a few billionaires who didn't make it. It's an interesting compilation because they also list how they made their money, and so many of them did it, not by inventing, manufacturing or selling a real product but by manipulating money. There are more hedge fund managers than anything else. Nearly half of the 45 new members made their fortunes in hedge funds and private equity. Money manager John Paulson joins the list after pocketing more than $1 billion short-selling subprime credit this summer. So see you can even make money off of a national calamity - the burst bubble of the subprime mortgage mess. The collective net worth of these 400 people is $1.54 trillion up $290 billion or 19% from last year.
Meanwhile, the average family's finances are in the doldrums:
Its the Federal Reserve's Report on U.S. Family Finances, and it quantifies what most people already know: The average family is not making much economic progress:
"After growing rapidly during the boom of the 1990s, the net worth of the typical American family rose only 1.5% after inflation between 2001 and 2004, the Federal Reserve said in an update of a survey it does once every three years.
The Fed said the net worth of the median American family -- the one smack in the statistical middle -- was $93,100 in 2004. Net worth, the difference between a family's assets and liabilities, rose a robust 10.3% between 1998 and 2001 and 17.4% in the three-year interval before that.
A booming housing market boosted the typical American family's wealth between 2001 and 2004, but stagnant stock prices and rising debt offset many of those gains."
The Fed helps explain what many politicans have been unable to grasp: the disconnect between rosy economic headline data and real life experiences for most families.
... The net worth of the typical family in the richest 10% rose to $831,600, a 6.5% increase from 2001, adjusted for inflation. In contrast, the net worth of the typical family in the bottom 25% fell 1.5% to $13,300.
A count of all those who made their money from hedge funds, investments, leveraged buyouts, mutual funds or money management comes to 102, over a quarter of all billionaires. This attests to the financialization of the US. In contrast, the number of those who made their money from actually making and selling a product is 141 give or take a few not counting real estate, hotels or casinos. Four billionaires made their money off casinos. This could be considered a direct transfer of money from the poor and ignorant to the rich and savvy. And California recently voted to let the Indian gaming tribes add even more slot machines! 33 made their money off of real estate. Those who actually made a product or provided a service include a number of what I would call "soft" products or services: fast food, entertainment, sports. For instance, 
Chick-fil-A, Ultimate Fighting Championship, football, the New York Yankees, Speedway Motor Sports, New England Patriots, Walt Disney, movies (3), salsa, sports concessions, Dallas Cowboys, other sports (3), non-dairy creamer (2), pizza, tobacco, Subway (2), Iams (pet food), chewing gum, wine, Slim-Fast, liquor, Estee Lauder cosmetics (2), Beanie Babies, Star Wars (the movie), Carnival Cruises, fashion, candy (3), other pet food (3). There are 13 billionaires from fast food and other questionable, ingestible items, 10 billionaires from sports, 6 from entertainment, 3 from cosmetics and fashion. All these things are not essential to the preservation of life. Meanwhile, a population of a billion people live in slums without adequacy in the basics of life: food, clean water, decent housing and proper sanitation.
Of course, Bill Gates, founder of Microsoft, is numero uno on the Forbes 400 list followed closely by his friend Warren Buffett. Bill, a college drop-out, has arguably contributed much to the development of human society since computers are ubiquitously used for business and pleasure. They are in fact one of the revolutions in human development like the railroad or the automobile. Notably, Warren Buffett, who made his money from investments complained that he's not being taxed as much as his secretary. Keep it up, Warren, and you'll be kicked out of the rich people's club! 
Bill Gates has done much good in the world through his Bill and Melinda Gates foundation, and Warren has donated the bulk of his fortune to that foundation. So are all rich people bad? Not at all. Some have contributed mightily to human development through invention and industry as well as philanthropically. Far too many however, have made their money by manipulating money.
Oil, gas, pipeline and refining billionaires number 23. They won't take the green revolution lying down. There are billions in vested interests at stake. In fact the invasion of Iraq was all about oil. The War on Terror is all about fighting the slum dwellers of the world. Proving that war is profitable, William Conway, Daniel D'Aniello and David Rubenstein of the Carlyle Group joined the billionaire club this year.
There are 5 Wal-Mart billionaires, 3 from the Mars family (candy, pet food), 3 Ziffs (inheritance, real estate), 12 Pritzkers (inheritance from Hyatt hotels and Marmon conglomerate), 4 MacMillans (inheritance from Cargill), 6 Hearsts (publishing heirs), 5 Johnsons (cleaning supplies and bug spray), 4 Lerners (inheritance from credit cards, Bank of America)
Jailbird Michael Milken (#165) is on the list as well as pardoned fugitive Marc Rich (#317).
Marc Rich dropped out of NYU to work on Wall Street, took job in mail room of Philipp Brothers. Met long-term partner Pincus Green; built Phibro into world's largest commodities firm. Created spot oil market 1968, founded Marc Rich & Co. 1973. Fled to Europe 1983 after being indicted for manipulating U.S. oil system, trading Iranian crude during 1980s hostage crisis, evading $50 million in taxes. Pardoned by President Clinton 2001. Claims to have renounced U.S. citizenship, holds Spanish passport; received honorary degree from Bar-Ilan U. in Israel earlier this year.
Financial genius, Michael Milken, joined what became Drexel Burnham Lambert 1969. Developed market for high-yield junk bonds, fueled 1980s leveraged buyout mania. Helped fund cash kings of The Forbes 400: Ted Turner, Carl Icahn, Ronald Perelman, Henry Kravis. Earned $550 million in salary and bonus in 1986. Ratted out by fellow arbitrager Ivan Boesky; plead guilty to 6 counts of securities fraud 1990. Paid $900 million settlement; sentenced to 10 years in prison, released after 22 months. Still actively trades. Investor in education outfit Knowledge Universe; company sold stake earlier this year to diversify ownership. Spends majority of time on philanthropy. Charity started early: rode bicycle through San Fernando Valley streets collecting dimes and quarters for American Cancer Society as a kid. Donates to doctors looking for cures for prostate and breast cancers, melanoma, Alzheimer's, diabetes, leukemia, AIDS.
I have only known one of the billionaires on the Fortune 400 list personally: Irwin Jacobs (#297 in a 20 way tie) with $1.6 billion. He was my advisor at University of California, San Diego, in 1968 when he was a professor there. That's before he started Link-a-bit and Qualcomm. This man was exceptionally gifted and talented intellectually and socially. The former leads to a PhD; the other is a gift from Mother Nature. I'd say he was borderline charismatic which is a rare combination in a person with a lot of intellect. In addition he was a total workaholic; that makes for a billion dollar trifecta! Jacobs attracted a lot of students to him, but I wouldn't say he was a good advisor. He seemed to have a sink or swim, survival of the fittest attitude and was a complete elitist in that way. He spent most of his time working on his JPL contracts and not helping his students. He wanted to be associated only with the best. There are the kind of advisors who take you under their wing, and there are the kind that kick you out of the nest. The latter were found mainly in the science and engineering departments.
Irwin's general values were good though. 
He was against the Vietnam War, but was not the kind to stand on a street corner with a sign protesting the war - a typical white liberal, the kind that student radicals frowned on for lack of commitment. He went on to be a full participant in the capitalist system much to his financial advantage, but has been very philanthropically active giving a large chunk of his money away making San Diego a better place to live, not to mention the employment that Qualcomm provides or my stock that quintupled in value before I cashed out. I have profited from Jacobs' donations to the arts and music community also by virtue of the fact that I am a consumer of that culture. I did see an article in the paper that he had donated to the food bank, but other than that, I think he has been mainly involved in building high profile cultural monuments to himself with his name plastered on them like most rich people although you have to give credit to a guy who puts his wife's name first! I read in the paper a few years ago that he drives a three year old Lexus. A guy with that kind of money who doesn't run out and buy a new car every year deserves a little credit as well. Qualcomm has been having its problems with the Broadcom billionaires in the last few years, and Jacobs has retired as CEO replaced by his son.
Finally, the story of H Fisk Johnson of the S C Johnson company billionaires:
Child of Samuel Curtis Johnson (d. 2004), great-grandson of salesman who founded floor wax company 1886. Sam took helm 1966; business expanded to cleaning supplies (Pledge, Windex), bug spray (Off, Raid). Estimated sales: $7 billion. Environmentalist Sam sent kids to alma mater, Cornell, before joining family business. Fisk: S.C. Johnson chairman has Ph.D. in physics, M.B.A.; working in Kenya, India to establish sustainable, community-based businesses.
I'm impressed: a doctorate in physics, a billionaire and working in Kenya and India to help poor people?!
