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Just how rich are these candidates?
Sen. John McCain, left, and Barack Obama
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TEXT OF STORY
Kai Ryssdal: John McCain and Barack Obama have spend the better part of the past couple of days beating each other up for being out of touch with the average American. It's a discussion centered on the real estate market. We all know housing's in serious trouble, but both men seem to be doing just fine for themselves there. McCains got more houses than he can remember. Obama's is worth a $1.5 million. But if you really want out of touch, Marketplace's Steve Henn has the story for you.
Steve Henn: No matter how many houses McCain or Obama own, they're both in the top 1 percent of American income earners. That means they're rich, right?
Well, rich is relative. Robert Frank is the author of "Richistan" and blogs on wealth for the Wall Street Journal. Frank divides the wealthy into upper Richistan, which includes the McCains and anyone worth more than $100 million. Middle Richistan starts at about $10 million. And then come the merely affluent.
Robert Frank: Which in the world of Richistan is the worst kind of pejorative insult you could ever call anybody.
The Obamas recently became affluent.
Frank: Yes, yes, but they are not McCain's.
The Obamas earn a few million dollars a year, mostly in book royalties, and recently bought a stately Chicago home. But even McCain, with more houses than he can count, may feel pressure to keep up with the Jones'. Mario Correa hosts a TV pilot, "PowerHouse." Think "Lifestyles of the Rich and Famous" set in Washington. It features homes like Surrey Hill owned by Republican lobbyists Ed and Edwina Rogers.
Mario Correa: It has an elevator. It has eight refrigerators. It has so many rooms that she doesn't remember how many rooms she has in it. And it has a gift-wrapping room where she likes to gift wrap gifts in money.
That's right, money. Edwina Rogers, a former advisor to the president, buys sheets of cash from the Bureau of Engraving and Printing, cuts them up and uses them for wrapping paper.
Edwina Rogers: Isn't it exciting? I love giving gifts wrapped in U.S. dollars.
If the McCains peers are wrapping up presents in sheets of cash, it might make them feel, really -- well, just middle class.
In Washington, I'm Steve Henn for Marketplace.
Your story on the wealth or relative wealth of Senators McCain and Obama was interesting. I do suppose that the information your story reports is relevant. However whether or not a financially well off politician can relate to the populace will get you an inescapable answer. That answer is, "let's hope so".
In order to be a successful national politician one must have some measure of wealth, privilege, social connection or some combination of those.
You will never see a high office occupied by any other type of person. Ever.
The true definition of rich must include the R.E.D. factor. R.E.D. is resistance to economic downfall. If a person can function without tripping up in an economy that has dealt economic blows such as doubling pump prices, fluctuating air fares, volatile food prices, uncertainty in the mortgage market and other things; then he/she is rich.
Both McCain and Obama can function without a hitch even in this economy, thus they are rich.
Senator McCain is rich not because he owns all of those homes, he is rich because by all accounts he and his wife have a lot of money left over. Senator Obama is not rich because his house cost, or is currently valued at, a million or more dollars; he is rich because his accomplishments have allowed him wealth beyond that.
Lastly, senators have pensions.
A note to those who live outside of California. There are countless homes in our fair state that cost a million or more dollars, but most of those who live in those houses are not rich.
Great & relevant story! BTW, Mr. Frank appears to have simply provided answers to a few basic questions about levels of wealth and obviously is not connected in any way to the video, which was properly credited, or to any political party affiliation. Pay attention people.
to Mr. Edwards,
I don't believe Mr. Frank had anything to do with the video if that is what you are referring to, he just wrote a book about the rich. You are correct though the video is unflattering and will be spun, I suppose that is why the producers selected it.
