Structural Change and Evolution of Top Wealth: The American Forbes 400 List, 1990–2020

Over the past three decades, the wealth distributionWealth distribution in the U.S. has become remarkably polarized, with the rich amassing even greater fortunes. This chapter examines the wealth distribution from 1990 to 2020, focusing on dataData fromForbes the Forbes 400, not only analyzing the wealth concentrationWealth concentration but also tracing the sources of wealth. The main findings are as follows. First, the phenomenon of increasing wealth concentration is observed, and the number of the richest members who created their wealth themselves is increasing in the last three decades. This implies that inheritanceInheritance plays a less central role in wealth acquisition, potentially reducing the effectiveness of increasing the federal estate tax as a remedy for wealth inequalityWealth inequality. Second, the retail sector has experienced the most rapid growth in wealth, defying the challenges posed by the dot-com and subprime mortgage bubbles. Wealth accumulationWealth accumulation in the finance and information sectorsInformation sector peaked in the early 2000s. Finally, there have been significant changes in the business models that generate wealth. E-commerceE-commerce giants have eclipsed traditional retail stores, the information industryInformation industry is embracing digital mediaDigital media, and asset managementAsset management within the finance and insurance sectors has become highly profitable with characteristics that favor increasing returns to scaleIncreasing return(s) to scale.