As I was perusing Facebook posts the other day, I came across this meme posted on the Republicans of California page (of which I’m a member):
I read the back and forth in the comments section between pro-Trump people, and those who are pro-Cruz, or Kasich, etc.
I was trying to think of a good comment to post, when I thought, “If Trump did inherit that much, has he managed the money well?” This led me to look into Trump’s annual growth rate from the time he received his inheritance, to present time.
I did a little checking on the $100 million inheritance number, and I found that most news outlets are reporting that it was more than likely around $40 million. Whatever the amount, everyone’s in agreement that Trump received his inheritance in 1974. Of course, the first glimpse we get at Trump’s net worth is in 1978 when Business Week estimated Trump’s net worth at $100 million. That’s the number we’ll go with when comparing Trump’s annual growth to that of the United States’, and to Ted Cruz’s.
The calculation for annual growth is:
I took the easy route & used a growth rate calculator.
Here’s the annual growth rate for the USA, Trump, and Ted Cruz. The growth rate for the United States & Trump are from 1978 to 2014 (1978 being the year we have Trump’s earliest net worth calculation).
United States annual growth rate of net worth from 1978 to 2014
In 1978 the United States had a net worth of $12 trillion.
In 2014 we had a net worth of 123.8 trillion.
That’s a 25% annual growth rate. Not bad, right? We’ve done pretty good for ourselves.
Trump’s annual growth rate of net worth from 1978 to 2014
(For Trump’s 2014 net worth we look at 3 different figures. Bloomberg has Trump’s net worth at $2.9 billion, Forbes has it at $4.1 billion, and Trump has said it is $10 billion. We’ll calculate the annual growth rate for all three numbers)
In 1978 Trump had a net worth of $100 million.
According to Bloomberg, Trump had a net worth of 2.9 billion in 2014.
78% annual growth rate.
According to Forbes, Trump had a net worth of 4.1 billion in 2014.
If that figure is true, then Trump had a:
111% annual growth rate.
According to Trump, he had a net worth of 10 billion in 2015 (we added a year for this calculation).
If that figure is true, then Trump had a:
267% annual growth rate.
Just for fun, we calculated Trump’s annual growth rate from 1974, assuming that he had a net worth of $40 million at that time. We can’t actually use that figure, as we don’t know if he was worth more, which, most likely he was. Here are the numbers.
If Trump’s net worth was $40 million in 1974, and it was $2.9 billion in 2014, then his annual growth rate would be:
If his net worth in 2014 was 4.1 billion, his annual growth rate would be:
If his net worth in 2014 was $10 billion, his annual growth rate would be:
Ted Cruz’s annual growth rate of net worth from 2012 to 2015
As we only have Cruz’s recent financial disclosures to go on, we have a shorter span of time to look at.
Forbes has Cruz’s net worth for 2015 at $3.5 million. Net Worth Tomb has it at $4 million. We look at both numbers.
Net Worth Tomb estimates Cruz’s 2012 net worth to be $2,285,714.
If Cruz’s net worth was $3.5 million in 2015, his annual growth rate would be:
If his net worth was $4 million in 2015, his annual growth rate would be:
Now, it appears that Trump’s annual growth far surpasses that of the United States, and Cruz’s. There are some economists who say that Trump could have made billions more if he “had invested in an index fund in 1988.”
Of course, in a recent speech the Republican candidate for president said he loves “getting and getting.” He said something to the effect that he doesn’t care about how much he has, he loves the “acquiring” of things. I believe that Trump loves the “thrill of the chase,” and the capture, but not really holding onto something. It’s boring to him. He needs new challenges, and he likes to win. Investing his inheritance way back in the day would’ve been boring to him. He wouldn’t have had to do anything except watch his investment grow. That wouldn’t do it for him. He’s a hunter & a killer. Nothing boring about that.
So here we have it.
America’s annual growth rate over the last 36 years has been 25%
Ted Cruz’s has been 18-25%
Trump’s has been between 76-267%
We’ll take the middle figure for Trump which seems the most reliable. That’s a 111% net worth growth rate (Fortune Magazine actually has Trump’s growth rate at 300% since 1987).
If Trump can do for America what he did with his inheritance & holdings, the country would be in amazing shape, financially.
In one year, America’s net worth would more than double, going from $123 trillion, to $261 trillion.
If we stay at our current rate of 25% annual growth, America’s net worth will only be $154.75 trillion next year.
With the kind of growth Trump could bring, is it safe to say he could pay off the debt in 8 years? I say he could do it even quicker.
Now tell me who you’d rather have as president what with our astronomical debt, and failing economy.