How people get rich now

Paul Graham argues that the rise of tech-company founders is not a break from history but a return to a norm that was suppressed in the mid-20th century, and that rising inequality follows naturally from more people starting more valuable companies. In 1982, 60 of the 100 richest Americans had inherited their wealth, while by 2020 that number was 27. Of the 73 new fortunes in 2020, 56 derived from founders' or early employees' equity, and about 30 came from tech companies. The essay attributes the change to cheaper startup costs, higher valuations and faster company growth.