Grant Cardone, a self-made millionaire, recently asked on Twitter how public servants (politicians) are becoming multi-millionaires on $100,000 salaries. While the average annual salary of a rank-and-file Congressional member is $174,000, there is nothing preventing them from earning incomes outside their official duties.
Stock investments are a likely source of income for many members of Congress, but a recent study found a "suspicious pattern" of Congressional members earning higher-than-average returns on their stock investments. This suggests that at least some Congress members may be profiting off their jobs by using insider knowledge about upcoming policy changes or economic shifts to make profitable stock trades.
In addition, some members of Congress are simply born rich or married rich, which can give them a significant financial advantage when financing their campaigns and running for office. Others may amass wealth in the business world before entering government, as was the case with Sen. Rick Scott (R-Fla.), who built a net worth of $300 million before founding Columbia Hospital Corp.
Here are some specific ways that politicians in the United States have become multimillionaires:
Stock Investments: As mentioned above, many members of Congress invest in stocks, which can be a lucrative way to grow their wealth. However, it is important to note that there have been allegations of insider trading by members of Congress, so it is important to be aware of the potential risks involved.
Book Deals: Politicians often write books about their experiences in government, which can be a lucrative source of income. For example, former President Barack Obama reportedly earned over $65 million from his book deal for "A Promised Land."
Speaking Fees: Politicians are also in high demand as speakers, and they can earn a significant amount of money giving speeches to corporations and other organizations. For example, former President Bill Clinton reportedly charges up to $750,000 per speech.
Lobbying Jobs: After leaving office, many politicians become lobbyists, where they use their connections and experience to influence government policy on behalf of their clients. Lobbying can be a very lucrative profession, and some former politicians earn millions of dollars per year.
It is important to note that not all politicians become multimillionaires. However, the opportunities to make money are significant, and many politicians do take advantage of them. This raises important questions about the potential for conflicts of interest and the influence of money in politics.
