Jim is a money manager. Specifically, he manages the money of rich people who made their own fortunes through hard work, invention, or by inheritance. From what he tells me, there are more ultra-rich families in America that have inherited fortunes than there are people who created fortunes. He would know — in order to become one of Jim’s clients you must have a net value of at least $1 million. It’s strange to think there is more old money circulating in this economy than there is venture capital.

This begs the question: if old money drives the economy, how does new money ever enter the picture? Where does the average working Joe fit into the picture? What about the middle class? When does the middle class get to ante up to the investment table? During the 1990s we saw more day traders buying and selling in frenzy to make it into the top 10 percent. Of course, only 1 percent of those people ever made the grade.

Does someone have to be rich in the first place to become richer? What does it take to cross the financial trenches and break into upper percentiles? Knowing that the financially fortunate rarely emerge from a vacuum is essential, especially when we bring the mighty corporations into the picture. All successful corporations, as reviled as they are, were started by venture capitalists taking that proverbial chance. This means that most corporations were started in an effort to create new goods and services resulting from the investments of middle to upper class businessmen and investors.

J.P Morgan didn’t fall from a money tree. Steve Jobs didn’t just open a window and let money fly in. “It takes money to make money” is a truism for a reason, but not for reasons most people with inheritances think. It takes venture capital to start a business — it takes seed money to get an idea off the ground. Where this money comes from is not as important as what is funds and who benefits from its investment.

The rich become richer during economic downturns and depressions. How is this? Recessions and depressions have a tendency to destroy competition, therefore consolidating the wealth-base of the super rich. Competition is not in the best interests of the super-rich. Consequently, it is the corporate structure — justifiably attacked for its lack of transparency — that allows new wealth to be created and more people to participate in that wealth. Most corporations are started by entrepreneurs — and that entrepreneurial spirit is what has made the middle class and the nouveau riche possible.

Breaking into the Ten Percent Club make take a fair amount of shrewd, savvy day trading. Don’t trade stocks online without a great team of people behind you.

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