While some multimillionaires started in poverty, most did not. A study of the origins of 303 textile, railroad and steel executives of the 1870s showed that 90 percent came from middle- or upper-class families. The Horatio Alger stories of 'rags to riches' were true for a few men, but mostly a myth, and a useful myth for control.
About this quote
- What does it mean?
- Most wealthy executives came from privileged backgrounds not poverty contradicting the idea that anyone can become rich through hard work alone.
- In plain terms
- Most rich people started in good families not poverty making the rags to riches story mostly a myth.
- What can you take from it?
- Be skeptical of stories that everyone can become rich easily.
Where it applies
Putting it to work
Questions to consider
- Where does most wealth come from?
- Why are certain myths useful?
Another view
Some individuals do rise from poverty though they are outliers.
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