In the Land Of Mammon
Robert Frank: Richistan : A Journey Through the American Wealth Boom and the Lives of the New Rich
The New York Sun, August 15, 2007
Despite unprecedented social, political, economic, and cultural upheaval, there is, still, just a part of this country's vision of itself that is forever Bedford Falls. That was an idea of nation as extended community, diverse, but not too diverse, a land of opportunity, certainly, but one where no one was left too far behind, or ended up too far ahead. There was Potter, but he was an outsider, the moneyed exception that proved the modest rule, the rule that was also an ideal, of an America where everyone was in the same boat.
Robert Frank, the author of the entertaining, provocative, and dryly amusing "Richistan" (Crown, 278 pages, $24.95), was prompted to write his book by the realization that this was, quite literally, no longer the case. As the writer of the Wall Street Journal's "Wealth Report" (the existence of which tells you something about the times in which we live), his beat took him each year to Fort Lauderdale's International Boat Show, a "weeklong celebration of boats, beaches, and billionaires." There he met a Texas yachter who told him that "the American rich seemed to be floating off to their own country," a country that Mr. Frank has dubbed Richistan.
In Mr. Frank's view, today's new rich are busy creating their own virtual, self-contained nation, complete with their "own healthcare system (concierge doctors), travel network (Net Jets, destination clubs), separate economy (double-digit income gains and double-digit inflation), and language...They didn't just hire gardening crews; they hired personal arborists". Yes, there's a touch of hype in that description (if any journalist is going to make it to Richistan, he's got to sell a lot of books), and a touch of the nothing new, too: The very rich have always been different. It's just how that's changed.
That said, there's no doubt that Mr. Frank is on to something. The key, as he explains, is the remarkable growth in the numbers of America's rich. In 1995 there were nearly 4 million households with a net worth of more than $1 million. By 2004, that total had increased to more than 9 million (both tallies are based on 2004 dollars). Now, as Dr. Evil discovered, and as Mr. Frank concedes, $1 million is not what it was. It's not a bad start though.
It's not just that there are more rich folk around. They are also richer, much richer, than they used to be. By 2004, more than 100,000 households enjoyed a net worth of more than $25 million. If you feel like a loser reading those words, it's no better writing them, believe me. Be that as it may, this wild, if uneven, accumulation of wealth is basically a sign of good times, a largely benign side effect of capitalism on the move. Mr. Frank clearly understands this. His description of the wonders, extravagances, and peculiarities of Richistan is essentially travelogue and guidebook, neither indictment nor paean, and despite the mega-yachts, megamansions, and the $899 pair of children's shoes (crocodile-skin Sperry Top-Siders, since you ask), there is no suggestion of Robin Leach.
Mr. Frank may poke some fun, but for the most part he takes Richistan as he finds it. Yet, for all that, it's possible to discern some faint hints of unease. The source of this, I suspect, is partly aesthetic and partly (for want of a better word) patriotic. So much ostentation may not only be in poor taste, but is it also a betrayal of older, more austere American values, a rejection of Bedford Falls?
Above all, it's likely to be the unevenness that worries Mr. Frank the most, an anxiety betrayed by the statistics of rising inequality that occasionally surface in his pages. Not all of these are breaking news: For example, most of the shift in the concentration of wealth in favor of the top 1% took place two decades or so ago. Nevertheless, the fact that the share of national income now held by the top 1% of earners is at a postwar peak is food for thought, especially at a time when the median income of American households is under severe pressure.
The rich may be pulling away from the rest of the population, but "Richistan" shows how the richest are pulling away from those who are just by-their-fingertips rich or, horrors, merely affluent. Mr. Frank explains how this acts as both carrot and stick to the toilers of Lower Richistan (net worths of $1 million to $10,000,000 million as they try to buy, as well as work, their ways to higher status. In 2004, some 20% of these treadmillers spent more than they earned. That's neither sustainable economically, nor is it a recipe for happiness. Where it may lead is major political change.
Politics is, frustratingly, a topic that is largely beyond the scope of this book. To be sure, Mr. Frank makes the obligatory reference to the swerves to the left that followed both the Gilded Age and the Roaring '20s, but there's little discussion of the extent to which the very existence of Richistan (not to forget the threat it represents to social cohesion) may help history repeat itself. Nor does he examine what may be Richistan's most significant, if somewhat perverse, contribution to this country's political development, one that may follow from the increase in inequality within Richistan itself, and, more dangerously still, its approaches. As that trend continues, there's a clear risk that some of society's best, brightest, and most influential will be left feeling that they have missed not only the yacht, but also the boat.