What We Can Learn From Presidential Wealth

As one of our least affluent presidents, Harry Truman (in office 1945-1953) spent much of his childhood on the family farm. Subsequently, he dropped out of business school and, years later, law school. Trying several jobs, he was a bank clerk, a timekeeper for construction crews on the Atchison, Topeka & Santa Fe Railway, and, during WW I, an artillery officer in the Army. In 1921, the clothing store that he co-owned failed. At its peak, his wealth was estimated at less than $1 million.

For Truman somewhat, and other more affluent presidents, a look their wealth takes us far from the White House.

Presidential Wealth

George Washington was very rich. Including his land, savings, inheritance, and other assets, Washington’s net worth, in today’s dollars, would have been a whopping $525 million! Yes, he did marry the wealthiest widow in Virginia. But perhaps more importantly, Washington’s papers indicate his interest in running his estate.

Like Washington, our first presidents had land wealth:

Not quite the man of the people he was reputed to be, Andrew Jackson also had land wealth that was valued at as much as $119 million. Meanwhile, the 19th century presidents that had been attorneys were much less affluent. At its height, Abraham Lincoln’s net worth was probably less than $1 million.

However, by the end of the century, with Grover Cleveland, we again start seeing some very wealthy men. Theodore Roosevelt had an estimated $125 million of family money that came from industry, Herbert Hoover made his millions in mining, and Franklin Roosevelt also inherited the family money. Moving ahead to the 1960s, we have JFK’s net worth coming from his fathers’ investing acumen and (according to history.com also rum-running and Hollywood movies). Born poor, Lyndon Johnson amassed a fortune through radio and TV stations and land purchases.

These were some of the totals (in current dollars):

• Theodore Roosevelt (1901-1909) $168.6 million
• Warren Harding (1921-1923)  $1 million
• Calvin Coolidge (1923-1929) less than $1 million
• Herbert Hoover (1929-1933) $100,1 million
• Franklin Delano Roosevelt (1933-1945) $80.6 million
• Dwight David Eisenhower (1953-1961) $10.6 million
• Lyndon Baines Johnson (1963-1969) $131.9 million
• Jimmy Carter (1977-1981) $9.5 million

Our Bottom Line: U.S. Economic History

We can divide our economic history into 5 major eras: 1) An agricultural era during which a canal/railroad transport network started to develop (1st half of 19th century). 2) An era dominated by capital goods formation (oil, steel, finance) and railroad expansion (second half of 19th century). 3) A consumer goods series of decades that was characterized by the onset of the automobile (first third of 20th century). 4) A depression era when government became more economically active (1930s). 5) An era when production of services surpasses manufacturing (1950s-now).

At the same times, our most affluent presidents benefited from the industries that were propelling economic growth.

My sources and more: Thanks to an Atlantic article and its link to more detail for inspiring today’s post. Then, history.com had more.