The Evolution of the Billionaire

In this month’s podcast, Sarah Christopherson and Sister Emily Tekolste’s conversation includes a discussion of billionaires and how money grows quickly when it starts as an inheritance and/or property. Since most of us are not billionaires or even millionaires, we may not realize that tax codes are written for the wealthiest to benefit – not the middle or lower classes. Many loopholes and provisions are simply not a topic of discussion in most family homes. Like expensive cuts of meat, they are simply unavailable and therefore not part of the conversation or general knowledge.

As a young student many years ago, I learned about John D. Rockefeller, who became the world’s first billionaire in 1916, that Inheritance matters. The Rockefeller family remains one of the wealthiest families in the world, with a combined net worth of approximately $10.3 billion spread among more than 200 family members. There are many billionaires in the United States today, and he became the world’s first! This floored me when I started working on this newsletter, simply because it was so long ago. 

In contrast to our first millionaire, Henry Clay Frick’s net worth in 1918 was $225 Million. In 1871, Frick, along with a cousin, invested family money to acquire coking fields and build coke ovens. He then made his fortune selling coke to Andrew Carnegie — the raw material used in steelmaking — and as a partner in the Carnegie Steel businesses. It took him 47 years to get that $225 million. He needed $975 million to catch up to Rockefeller.

Forbes reports that by 1990, there were 66 U.S. billionaires; 198 in 2000, 404 in 2010, and 412 in 2011. As the number of billionaires reported increases, so does the use of the actual word itself. This word has appeared in the NOW Corpus (word database) of News on the Web 288,087 times since 2010. In the five years from 2010 to 2014, the word billionaire appears 14,382 times, but in the first three months of this year, it has been used 18,686 times. Projecting forward to the end of this year, the calculated expectation of billionaires appearing is 57,528. The rate of increase from annual counts from 2010 to 2024 equals 1880.79 percent. Words are used as they are needed. It is obvious to me that this particular word is needed now more than ever, though it is still relatively new to most people’s eyes and ears. 

For the younger readers out there, remember this: the term “millionaire” was not something that applied to most of us — it was the rare exception. We might have known who they were, but we didn’t know them. A glance at the chart below, counting “billionaires” in every state, shows that the term will soon become more familiar. And the young who wanted to become millionaires in the past will want to become billionaires today. 

The Common Good

Both wealthy and poor citizens in the United States rely on the government, for-profit, and non-profit organizations for services and goods, albeit in different ways. Many low-income individuals depend on non-profit organizations for essentials such as food, education, and clothing. These same non-profits depend on for-profits for the donations of essentials such as food, education, and clothing. In contrast, wealthy individuals and for-profit organizations benefit more from the support of non-profit organizations through tax deductions, which are not available to the working class, the poor, or those living in poverty.

Be aware of this fact: When grants, loans, and funding for nonprofits are cut from the Federal budget, the impact is overwhelming for the poor. Non-profits experience increased demand for services and monies when grants and loans dry up. While the United States is considered the richest country in the world … 37.9 million (11.5 percent) of its residents live in poverty. 

Public Goods – are available to the wealthy and the poor. 

• Town roads, parks, schools, and national defense are examples of public goods. A public good may also be a basic need, such as access to clean air and drinking water. 
• A public good can be consumed by many people without restricting its availability to others. A private road has restricted access; a public road does not. 
• There are disagreements over what is or should be a public good or a private good.  These disagreements are basically decided by the government’s spending priorities.

For-Profit Goods – available to the wealthy and the poor

For-profit goods are products and services offered by businesses with the primary goal of generating revenue and distributing profits to owners or shareholders. Decreased government regulations increase profits for private businesses and corporations. For example, fewer regulations result in less oversight and review, fewer requirements for environmental impact statements, and reduced equipment and processes for clear air and clean water. 

Non-Profit Goods – available to the wealthy and the poor

Non-profit goods are non-profit services and items that come from a wide range of activities and organizations dedicated to public benefit, including charitable, educational, scientific, and religious purposes, often with tax-exempt status. Some non-profits are opening coffee houses, selling handmade items, greeting cards, and other consumables. Non-profit organizations are finding it increasingly challenging to access much needed capital to carry out their mission-related activities. With increasing competition for a decreasing supply of grants from institutions and the government, non-profits had to turn to creating alternative sources of funding, including crowd-sourcing, among others. 

Google AI tells us that non-profit organizations can sell goods to generate revenue, but they must adhere to specific tax guidelines and ensure that any unrelated business income is reported and taxed appropriately.

Almost 20 years ago now, in 2006, Catholic Charities USA published a Policy Paper, “Poverty in America, A Threat to the Common Good”.  The introduction to the executive summary stated, “Poverty in the United States is a moral and social wound in the soul of our country. It is an ongoing disaster that threatens the health and well-being of our nation.  We have the resources, experience, and knowledge to virtually eliminate poverty, especially long-term poverty, but we do not yet have the political will.”  That statement is more relevant today than in 2006!

According to Health and Human Services, a family of four in 2023 would be considered impoverished if their income is $30,000 or lower. Alaska and Hawaii use a slightly different measure due to the higher cost of living in these states:  $37,500 in Alaska, and $34,500 in Hawaii.

Giving up Billionaires for LENT

No matter who we are, where we live, or skin tone, we want an economy that works for all of us, not just a handful of billionaires. Catholics and people of goodwill across the country agree that taking food and health care from our families to make the ultra-rich richer is just plain wrong.    

As some lawmakers in Congress seek to slash programs like Medicaid and SNAP to pay for tax giveaways to billionaires, it is time to stop letting the ultra-wealthy rig the economy and rob our communities. Instead of bowing down to billionaires, Congress must make them pay their fair share in taxes so that our communities can have quality health care, paid leave, affordable childcare, and more!  

During Lent, we fast from things that prevent us from being part of the beloved community, people of goodwill. We cannot think of anything more disruptive to the common good than the billionaires and the Congress enablers. Those who put their own interests ahead of the country, dismantling our government in the process. 

Poverty Awareness Month – January, 2025: An annual papal message for the World Day of Peace (Jan. 1) has been released every year since 1968. This year’s message was titled Forgive us our trespasses: grant us your peace. Pope Francis encourages us to confront the structures of sin that exploit the poor and our common home, emphasizing how “God’s mercy in our lives can help achieve peace.”

Non-profits are very important. They fill a gap that should not be there! When the government stops helping the poor, non-profits feel the pressure to make up the difference. It simply cannot be done until our society rebalances the inequities and inequalities.

Call to Action: Click and Reflect on the Following:

20 Poverty Quotes to Inspire Change 

The Lord Hears the Call of the Poor

If Not Now, Tell Me When – Carrie Newcomer

If not now, tell me when…If not now, tell me when.
We may never see this moment…Or place in time again
If not now, if not now, tell me when.
I see sorrow and trouble in this land. I see sorrow and trouble in this land
Although there will be struggle we’ll make the change we can.
If not now, tell me when.…
I may never see the promised land. I may never see the promised land.
And yet we’ll take the journey And walk it hand in hand
… So we’ll work it ’til it’s done Every daughter every son,
Every soul that ever longed for something better,
Something brighter.
… It will take a change of heart for this to mend.
It will take a change of heart for this to mend.
But miracles do happen every shining now and then
If not now, tell me when? … If not now, Tell me when.
But miracles do happen every shining now and then.
If not now tell me when. If not now tell me when. If not now tell me when.

 If Not Now lyrics © BMG Rights Management

Please listen to this month’s podcast, Evolution of the Billionaire and Tax Codes. For more information, you can read about our guest, Sarah Christopherson, at https://www.scgchristopherson.com/. Her email is sarah@scgchristopherson.com. For additional content on “Giving Up Billionaires for Lent” go to NETWORK’s site at:  https://networklobby.org/lent-2025-week1-reflection/.  Sister Emily TeKolste can be reached at  etekolste@networklobby.org.