Grant Cardone asks how a $100,000 politician suddenly became a millionaire — this is the harsh reality


Bonnie Cash/UPI/Shutterstock / Bonnie Cash/UPI/Shutterstock

Bonnie Cash/UPI/Shutterstock / Bonnie Cash/UPI/Shutterstock

Grant Cardon I know all about being rich and being poor. A sales trainer, speaker, and entrepreneur, he is worth an estimated $600 million, but spent part of his childhood in poverty. When Cardon graduated from college in 1981, he had his $40,000 debt.

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Given his experience with both sides of wealth, Mr. Cardon probably has a natural curiosity about why some people get rich and others don’t. That curiosity was shared on his Twitter this week when Cardone announced: Tweet of May 4: “Can you explain to me how civil servants (politicians) become millionaires with a salary of $100,000?”

Cardon did not elaborate on which civil servants (and billionaires) he was referring to. His tweets were likely aimed primarily at members of Congress. More than half of the 535 lawmakers are billionaires, according to a 2020 report from Open Secrets.

It’s also unclear where Cardon got the $100,000 figure. According to a 2019 report from the US Congressional Institute, the average annual salary for a member of Congress is $174,000. This is consistent with more recent estimates reported by The Washington Post.

The House Speaker makes $223,500 a year, while the Senate Speaker pro tempore and the majority and minority leaders each make $193,400 a year, according to the Congressional Research Institute.

Those are great salaries, much higher than the numbers Cardon tweeted, but they don’t necessarily make you a millionaire. What these offer is the perfect foundation to build on if you are looking to supplement your income while serving in Congress.

According to Open Secret, nothing prevents lawmakers from earning money outside of their official duties. However, there are limitations. For example, he on Level II of the Executive Schedule, which determines the salaries of executive political appointees, cannot earn more than 15%. Members must also disclose in detail the sources of both earned or passive income, such as stock dividends.

Equity investments are likely to be a source of income for many lawmakers, as they are for the general public. But as The New York Times reported last year, economist Serkan Karadas found a “suspicious pattern” in which lawmakers are earning above-average returns on stock investments.

According to the New York Times, Caradas’ findings “suggest that at least some members of Congress were profiting from their work.” This may come in the form of inside information about upcoming policy changes or economic developments that may affect stock performance.

In some cases, members of parliament are simply born wealthy. One example is Senator Mitt Romney (R-Utah). Father George was CEO of American Motors Before becoming governor of Michigan. Some married rich men, including former House Speaker Nancy Pelosi (D-California) and Senator Diane Feinstein (D-California).

Having a personal fortune before entering politics, especially for those with no legislative experience, can go a long way toward funding a successful campaign.

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Others made their fortunes in business before entering government. For example, Senator Rick Scott (Republican, Florida) built a net worth of $300 millionHe primarily founded Columbia Hospitals, Inc., which has evolved into the world’s largest healthcare provider, Columbia/HCA, using a series of acquisitions.

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This article was originally published on Grant Cardone asks how a $100,000 politician suddenly became a millionaire — this is the harsh reality