How Billionaire Wealth Like Elon Musk’s Impacts the American Economy — and Your Wallet
Written by
Dawn Allcot
Edited by
Jenna Klaverweiden
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America’s top 1% of billionaires control 27% of the nation’s wealth, according to a recent report from the Congressional Budget Office. When middle-class earners hear figures like $342 billion (Elon Musk’s wealth), $192 billion (Larry Ellison), $216 billion (Mark Zuckerberg) or $215 billion (Jeff Bezos), it can be hard to fathom.
What does all that money actually mean? How does it affect the U.S. economy? And how does it relate to the lives of everyday Americans?
Also see five money rules the rich live by that you should copy.
Money on Paper
First, it’s important to understand that the top 1% doesn’t walk around with wads of cash in their wallets. In fact, much of their wealth isn’t liquid at all. America’s highest earners have their money tied up in their company’s stock and other investments. Selling those stocks would likely create a stock market crash or, at best, diminish the value of the country’s top tech stocks.
“It’s hard to even comprehend the wealth disparity between the average person and the top 1% of earners, so it may be surprising how significantly their investments impact the economy as a whole. It’s dramatic,” said Melanie Musson, insurance and finance expert at Clearsurance.com.
ChatGPT also presented this point in a prior GOBankingRates article about redistributing Musk’s wealth: “Most of his wealth isn’t liquid, so pulling it off would be like trying to cash in stock in a company while crashing its value at the same time,” ChatGPT previously said.
In this regard, the wealth held by top Americans helps hold the stock market together, maintaining the value of investments for retail investors. Average Americans rely on a stable stock market so their 401(k) plans and other investment funds hold value, providing a sense of financial security and a possibility of retirement.
The Effect of Top Billionaires on Average People’s Lives
Beyond the value of the wealth billionaires hold, the way they spend their money also impacts everyday life.
“These people affect every American’s life every day because they are the ones who have started companies that impact daily lives for the average American,” Musson said. “Their investments impact Americans because those investments fund new ideas and help businesses grow and create. Those businesses employ people, push technology forward and change the future.”
Power and Influence
With great wealth comes power. The top 1% have a level of control and influence average Americans can’t imagine. Musk’s involvement in the federal government through the Department of Government Efficiency (DOGE) is just one example. Additionally, tech billionaires Musk, Bezos and Zuckerberg all attended President Donald Trump’s inauguration in 2025.
“There are a few individuals who are in a very strong position to influence the course of public policy,” Darrell West, senior fellow at the Brookings Institute, said in a podcast.
Investment Theory of Politics: What It Means for Middle-Class Voters
This isn’t exactly a new phenomenon. West pointed to the early 1900s, which saw wealthy industrialists like the Rockefellers and the Carnegies influencing policy.
West cited the “investment theory of politics” as an impetus for wealthy individuals to contribute to election campaigns and lobbyists who act in their best interests. “A lot of wealthy individuals discovered [that] politics became a good investment. Even if you contributed a million dollars or $5 million or $10 million, if you were able to get a policy benefit that advantaged your company, or you got tax cuts that advantaged your company and you reaped $100 million of benefits, then that $5 or $10 million contribution basically was a great investment on your part,” West explained.
However, wealthy people don’t hold all the power, West was quick to point out in the podcast. “We can outvote wealthy people because they are a relatively small part of our society and a small part our electorate. But it takes a recognition about what is happening … about the benefits that wealthy individuals have gotten out of our political system.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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