The Poor Get Richer

Commercial Laundry owners are entrepreuners and would be considered in the class of the self-employed. According to The Millionaire Next Door, one of my favorite books that I go back to for reference occassionally, self-employed people make up less than 20% of the workers in America but account for two-thirds of the millionaires. The book also goes on to classify the majority of these businesses as "dull - normal" - meaning they didn't invent something (welders, contractors, antique dealers, sexy commercial laundry etc.)

According to this CBO report (via WSJ), probably most business owners (who would be considered in the top 20th percentile) grew earnings by about 54% in a 14 year span - after inflation.

The great news is that the tide is rising on the other end of the spectrum also with the poorest 20 percent, increasing 78% over the same time frame.

What's going on here? The CBO states that a more then decade run of a tight labor market (with no end in sight - currently at 4.5%), welfare reform and tax credit policy. Enjoy the report - hot off the desk of Congress right to the Laundry Capitalist!

Congressional Report: Changes in the Economic Resources of Low-Income Households with Children