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Richistan: A Journey Through the American Wealth Boom and the Lives of the New Rich Paperback – June 24, 2008
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RICH-I-STAN n. 1. a new country located in the heart of America, populated entirely by millionaires, most of whom acquired their wealth during the new Gilded Age of the past twenty years. 2. a country with a population larger than Belgium and Denmark; typical citizens include “spud king” J. R. Simplot; hair stylist Sydell Miller, the new star of Palm Beach; and assorted oddball entrepreneurs. 3. A country that with a little luck and pluck, you, too, could be a citizen of.
The rich have always been different from you and me, but Robert Frank’s revealing and funny journey through “Richistan” entertainingly shows that they are truly another breed.
- Print length288 pages
- LanguageEnglish
- Publication dateJune 24, 2008
- Dimensions5.19 x 0.65 x 8 inches
- ISBN-100307341453
- ISBN-13978-0307341457
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Editorial Reviews
Review
—James B. Stewart, author of Den of Thieves and DisneyWar
“Like an anthropologist in the Amazon basin, Frank goes native . . . instead of a loincloth, he dons a white tuxedo.”
—New York Times Book Review
“Robert Frank charts the surprisingly volatile power of the burgeoning American multimillionaires, blue-collar workers turned fur-collared swells who increasingly and often uneasily wield their newfound influence like a club.”
—Vanity Fair
“Frank explores the new world of wealth in America and hands it to us on a silver platter. . . . His sharply drawn portraits of life in Richistan give us new insight into how America really works.”
—Chicago Sun-Times
“[Robert Frank] takes us on a whiz-bang tour of the lives of the new rich.”
—Portfolio
"Robert Frank truly understands the lives of today's wealthy. His entertaining profiles and fresh analysis make this a great read and a definitive portrait of the current boom."
—Ronald O. Perelman, billionaire financier, philanthropist.
"I couldn't put it down. Frank's field guide to the new rich is as funny as it is fascinating."
—Chris Anderson, editor in chief of Wired magazine and author of The Long Tail
"There's no group in society that fascinates me more than the new rich, or the nouveau riche, as they used to be called, especially the ones with social ambitions. The great 19th century English novelist Anthony Trollope created one of literature's greatest new rich characters in Augustus Melmott, who gave a ball for the emperor of China and everybody of social importance, who had sworn they'd never speak to him or his common wife, came and danced the night away. In Robert Frank's riveting book, Richistan, the same sort of attention-getting extravagance continues. Frank understands how great fortunes are made and how great fortunes are spent. I had a wonderful time reading this book."
—Dominick Dunne
"When Frank, a columnist for the Wall Street Journal, began noticing that the ranks of America's wealthy had more than doubled in the last decade, and that they were beginning to cluster together in enclaves, he decided to investigate this new society, where "$1 million barely gets you in the door." The "Richistanis" like to consider themselves ordinary people who just happen to have tons of money, but they live in a world where people buy boats just to carry their cars and helicopters behind their primary yachts, and ordering an alligator-skin toilet seat won't make even your interior designer blink. But Frank doesn't just focus on conspicuous consumption. He talks to philanthropists who apply investment principles to their charitable contributions and political fund-raisers who have used their millions to transform the Colorado state legislature. He also meets people for whom sudden wealth is an emotional burden, whose investment club meetings can feel like group therapy sessions. It's only in the final pages that Frank contemplates the widening gap between Richistan and the rest of the world-for the most part, his grand tour approach never loses its light touch."
—Publisher's Weekly
About the Author
Excerpt. © Reprinted by permission. All rights reserved.
BUTLER BOOT CAMP
Housetraining the New Rich
Dawn Carmichael stands at attention, holding two plates of almond-crusted sea bass with Moroccan salsa. The blond, ex-Starbucks barista is dressed in a blue suit and white shirt, with a crisply folded napkin draped over her left arm. She’s lined up with three other servers in the cavernous kitchen of the Starkey Mansion, a prim, Georgian home in downtown Denver. When they get the signal—two taps on the kitchen door—the group will march into the dining room, greet their 12 dinner guests and begin their first public performance of the Ballet of Service.
The Ballet of Service is a complex routine where all the waiters must serve the plates to guest in perfect sync. It takes hours of practice. And it is one of the most demanding skills taught here at the Starkey Mansion—better known as Butler Boot Camp.
Ms. Carmichael visualizes the routine: Serve to the left, take two steps to the right, shift the second plate from right hand to left, and serve again. When “addressing” the table, she must lean in far enough for a smooth plate delivery, but not so close as to make the guests uncomfortable. After serving, she’s supposed to take one step back, wait for eye contact with the other servers and exit the room counterclockwise.
Each step must look like a choreographed dance, building to a climax called the “crossover”—a plate-juggling pas de deux in which the butlers slide the second plate from their right to left hand with a quick body pivot, creating the illusion that the plate is suspended in midair while it’s being transferred.
The Ballet of Service is designed to show off all the desired traits of a butler-to-be—discipline, agility, poise and intimacy with tableware. And it’s one of toughest training exercises here at Butler Boot Camp.
Four times a year, aspiring butlers from around the country converge for Boot Camp training at Starkey, officially known as the Starkey International Institute for Household Management. Their aim: to become masters at the care and feeding of the rich. For eight weeks, the students hole up inside the mansion to cook, clean, polish, dust, wash and fold. They learn how to iron a set of French cuffs in seconds flat. They’re taught how to clip a 1926 Pardona cigar, how to dust a de Kooning canvas and how to pair an oaky chardonnay with roasted free-range game hen.
They learn how long it takes to clean a 45,000-square- foot mansion (20 to 30 hours depending on the art and antiques), where to find 1,020-thread-count sheets (Kreiss .com) and how to order Ben & Jerry’s Chunky Monkey ice cream at midnight if your employer is on a yacht in the Mediterranean (a British concierge service). They will be able to divide a 30,000-square-foot home into “zones” for cleaning and maintenance. They will design “stationery wardrobes”—envelopes and letterhead specially designed to reflect the owner’s wealth and social standing. They will be taught that sable stoles should never be stored in a cedar closet (it dries them out), and that Bentleys should never, ever be run through the car wash.
Most of the students live in the mansion during Boot Camp, following the strict Starkey rules. Everyone has to wear a uniform of khakis, crisp white shirts, blue blazers and brown shoes. First names are banned; everyone is “Mr.” or “Ms.” to stress the importance of boundaries. The students are required to rise from their seats every time a visitor enters the room. If there’s a coffee cup that needs filling, a spoon that needs polishing or a visitor who needs welcoming, the Starkey students must spring into action. The butlers-to-be are so wired for service that when a class break is announced, they all pounce from their seats to fill each other’s water glasses.
By the end of the course, the aspiring butlers will be masters at pampering the privileged. The rich, they will learn, like their shampoo bottles and toothpaste tubes always filled to the top. If their employers have four homes, chances are they’ll want their dresser drawers and bathroom cabinets arranged exactly the same in every house, so they don’t have to go searching for their socks or pills. And they learn that the rich live in constant fear of germs.
“They’re health freaks,” says Raymond Champion, Starkey’s chief instructor, standing at the whiteboard in Starkey’s basement classroom. “These people are very successful and guess what, they want to live forever. These are very germ-oriented people. Get used to it. Germs are huge in this world.”
No butler leaves Starkey without learning about the two other priorities for the wealthy—pets and collections. At Starkey these are known as “BYJ” categories, as in Bet Your Job.
During one class, Champion tells a story of a Southern family that had an entire mansion filled with birdcalls, which the butler had to dust and maintain every day. There was the guy with 500 cars that needed hand-washing and the rich heiress who had a barn full of cats and employed three full-time litter changers and a full-time bird feeder to pour seeds around the barn to attract birds to entertain the cats.
“The guy who fed the birds got paid more than any of us,” he says.
Most of all, the Starkey students learn never to judge their employers, whom they call “principals.” If a princi- pal wants to feed her shih tzu braised beef tenderloin steaks every night, the butler should serve it up with a smile. If a principal is in Palm Beach and wants to send his jet to New York to pick up a Chateau LaTour from his South Hampton cellar, the butler makes it happen, no questions asked.
Starkey students pay more than $13,000 for Boot Camp. While that may sound steep, the payoff is even bigger. Butlering has become one of the fastest-growing jobs in the United States. With so many Richistanis needing so many butlers, demand and pay are soaring. A good Starkey graduate can start at $80,000 to $120,000 a year—not to mention free room and board at the mansion.
First, they have to get through the Ballet. Tonight, Dawn Carmichael and the butlers are nervous. It’s their first Ballet and they haven’t had much practice. Dawn gets her signal and leads the other three servers into the dining room. Under a crystal chandelier, the dinner guests are arrayed at the table with perfectly spaced sets of flatware, finger bowls and assorted glasses.
The first plates go down smoothly. But on the crossover, Dawn moves before the other three servers. She freezes, trying to get back in sync. The other three also freeze. The guests glance up at the four panicked butlers standing motionless with their plates of sea bass.
Finally, the butlers nod, serve the plates and quickly march out of the room.
“I lost the rhythm,” Dawn says to the other butlers in the kitchen. “Oh man, was that bad.”
James Hopkins, a fresh-faced college grad from Maine, is equally disappointed. “It felt awkward,” he said. “We looked like robots.”
The next morning, Raymond Champion takes the class to task. A former marine, whose specialties include martial arts, weapons training and decorative baking, Champion has little patience for sloppiness. He served as an enlisted aide to several generals and served in combat during the first Gulf War. With his six-foot-two frame, square jaw and impeccable manners, Champion makes for the perfect drill sergeant for Butler Boot Camp.
“I was disappointed,” he tells the students the next morning, standing in front of his whiteboard. “Very dis- appointed.”
Champion says that aside from the crossover, there were other foul-ups. He looks at John Leech, a flamboyant bed-and-breakfast owner from upstate New York. Leech was in charge of wine during the dinner and his job was to keep all the glasses exactly half full. Yet he allowed some glasses to drop to a quarter full before refilling. Champion also says Leech paid too much attention to the guests’ conversation, rather than maintaining the detached attentiveness required of a butler.
“What can I say, I’m a very social person,” Leech tells me later. “The guests were all telling interesting stories so it was hard not to listen. And I didn’t keep the glasses full because I felt like I was being compulsive. But Champion was right.”
The next night the class hosts another formal dinner. It goes perfectly. Dawn leads an expertly choreographed Ballet of Service. Leech keeps the wineglasses exactly half full. And he successfully ignores the guests’ stories.
Champion greets them the next morning with a broad smile.
“Congratulations,” he says. “Now that was service.”
Product details
- Publisher : Crown; Reprint edition (June 24, 2008)
- Language : English
- Paperback : 288 pages
- ISBN-10 : 0307341453
- ISBN-13 : 978-0307341457
- Item Weight : 14.7 ounces
- Dimensions : 5.19 x 0.65 x 8 inches
- Best Sellers Rank: #960,198 in Books (See Top 100 in Books)
- #968 in Sociology of Class
- #1,512 in Economic Conditions (Books)
- Customer Reviews:
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I asked a friend if he'd like to read it when I was done, and he said, "You know, not everyone is as interested in rich people as you are, Dan."
That really hit me... that's why that person will never become wealthy. At least from what he does with his life (lottery ticket notwithstanding.) If you aspire to become something, it stands to reason that you'd have a desire to read about others that have done what you are aspiring to do. If you want to become the best tennis player in the world (or even just a good one) and you have a passion for tennis, doesn't it make sense to read books that give you an insight into the lives of Billy Jean King, Chris Everett, Arthur Ashe, John McEnroe...etc? If you don't have enough interest in the subject to even pick up a book to read about others that have done the same thing, you probably don't have enough drive to make it happen anyway. Now, there's nothing wrong with that I guess. But this person DOES want to be rich. This book won't make you rich, but it'll fuel your desires to do so... which is an important ingredient to attaining wealth.
The author tells us that in writing the book, he was primarily interested in those with a net worth in excess of $10 million, which he finds to be the beginning of the level of "Middle Richistan." This level ranges up to about $100 million, after which starts the level of "Upper Richistan."
Members of Lower Richistan, with between $1 million and $10 million net worth, tend to be politically conservative, and tend to be headed toward being poorer relative to those above them. As a result, they are increasingly frustrated, trying to keep up with those above them. All this per the author. But I tend to disagree. I can't imagine a high percentage of those in this net-worth range really worrying, day after day, about how to get richer. The author acknowledges the book, "The Millionaire Next Door," but does not give one the confidence that he read it.
The truth is that the author does not really give a hoot about the folks in this lower level of Richistan. That is not what the book is about. He says that "true wealth" begins at $10 million. And, per the author, most of these folks have made their money by starting their own company and selling it.
But these guys and gals, at some point, come to realize that they cannot possibly spend all their money in their lifetime. This is after they have bought houses right and left, then yachts and jets, then investments in art and such. In short, this group clearly ends up with more money than it knows what to do with. It is this concept that tends to define them, to themselves, their peers, and those "below" them. But, especially for the newly super rich, it also appears that many are unsure of who they are at this level, even as they find they are incapable of not seeking more wealth. For example, they typically believe that they can do more with their investments than simply put it into boring stocks and bonds. They are now, for example, in the position of buying small companies and/or investing early in promising private ventures.
Just the inclusion of its statistics may make the book worth reading. Some examples:
* American Millionaire households doubled from 1995 to 2003, from about four million to about eight million.
* 2004 was the first year that found more American millionaires than those in Europe.
* John D. Rockefeller was the first American billionaire, way back in the early 1900s.
* The middle class ruled the U.S. in the 50s, 60s and much of the 70s, not the super rich.
* The share of the nation's wealth held by the top 1% (minimum of $6 million in net worth in 2007) jumped from about 20% in 1970 to 33% in 1989.
* Half of the nation's wealth was created in the past 10 years.
* The total value of all U.S. stocks rose from about $3 trillion in 1990 to $17 trillion in 2007.
* Top federal marginal tax rate has dropped from 91% in 1963 to 34% in 2007.
The thesis of this book appears to be that the new super rich of today differ from the super rich of yesterday in how they made their money, how they view themselves, and how they affect the rest of us. The question is whether this thesis is convincing, based on the material in the book.
First, the author tries to make the case that extreme wealth is made quicker today than yesteryear. He uses the term "Instapreneurs." And here is where he tells us about some specific examples. One guy makes it via shampoo products, others via miniature ceramic villages, development of a private ski and golf community, developers of salsa and of pizza cheese products, or founders of dot.com companies. It's all over the place. And, I think we can all agree that with more wealth flying around, there are more opportunities for more wealth to be created. And in today's world, things can happen fast.
But, in short, I don't find this point that making money today is different than making money in the past all that convincing. I think that the ability to make fortunes fast is simply "scaleable" as the pie gets bigger, both because of more consumers and more money available for capitalization.
Second, the author claims that there is a different mindset with today's super rich compared to those of the past. Relative to this are some points made:
* Before 1800 in the U.S., it was rare for new fortunes to be accumulated. Most new money came from old money. In the late 1980's, things began to change. Only about 10% of today's millionaires inherited the bulk of their money.
* The new rich are much younger than their counterparts in previous generations.
* Richistans are far more diverse in age, race, gender and geography.
* After making their money, they are "too young to retire, too driven to relax...."
* The new rich have, in many ways, formed their own country, free from the restrictions or limitations that come from a single country.
Again, I do not buy the claim that the super rich today are much different than they were in the past. There are too many variables to make that claim stick. And some of the profiles done in the book sound very much like super rich of the past. Super rich is super rich.
And, while there is some "balance" in the book, some of the extremes get to me a bit. For example, the author spends a full chapter on what appears to be a shameless promotion of the Starkey Mansion Butler Boot Camp. What this entails is a $12,000 opportunity for folks to learn to be proper, educated sycophants to their super rich employers. Says one near-graduate: "I realized I liked being around wealth." And, according to the author, butlers and "household managers" are all the rage these days for the super rich.
In another example of excess, he spends a chapter telling us gory details of the life of the guy who made his fortune founding a private golf and ski resort. He and his wife live on a huge spread that has a private, world-class golf course, a huge house and more. They own a private jet, which they use to fly between other homes. Says the book, "He is always building a new home...." We are told that the guy is "workaholic wealthy." We're also told that this is basically an "ordinary" guy who made himself into one of the super rich, who is driven to live a life at the super-rich level. They have a kitchen staff of 10 at the home, and a total of more than 100 employees at the home. Yet, we are told that the guy "prefers to be around regular people;" although, he once "walked into a Bentley dealership and bought a $250,000 convertible on impulse." Finally, we are told that in 2006, the couple filed for divorce. I almost wanted to clap!
On the balance side, there are discussions about whether the super rich and their spending and other activities are good or bad for the U.S. economy, overall. The "trickle-down theory" is examined from both sides, as is the impact of the super rich being responsible for more and more of the nation's overall spending. Of interest is a section where the accumulation of debt is discussed. Somewhat surprisingly, the super rich tend to have a ton of debt. They appear to love to leverage what they have. Oracle CEO, Larry Ellison, for example, apparently hates to sell any of this options or shares; instead, he borrows against them, sometimes at an alarming percentage.
One oddity in the book is a chapter on how a 2004 upset in Colorado politics was engineered. What would have been more interesting and relevant would have been a chapter on the super rich who seek/buy political office: Michael Bloomberg, Donald Trump, Meg Wittmann, etc. And then there is the information about super rich forming self-help groups amongst themselves to share investments opportunities, personal advice, etc. Along with this, we get discussions about whether being super rich leads to happiness or not. Involved here is whether the super rich can "buy" their way into the social status they seek; also, can they assuage the guilt of having so much money by making it known that they are giving away sizable amounts of it for the public good?
As a part of writing the book, the author immerses himself in the world of the annual Ft. Lauderdale International Boat Show, where everyone who wants to buy or sell a super yacht gets involved. Here, the sky is limit, with larger yachts selling for tens of millions of dollars. The city rolls out the red carpet for this event, even in a year when a hurricane decimates much of the rest of the city. In this final chapter, the author emphasizes how these folks live in another world, relative to the rest of us. He questions, "How long can this last?" But it is here that the author also makes the point that these folks are becoming more international than not. They have little legal or moral option to their home countries when they buy multi-million-dollar yachts. They have crossed over the line to reside in Richistan, which is where they intend to stay.
The author wants to end on a positive note. He mentions Andrew Carnegie, the great American industrialist, who is famous for returning his wealth for the public good. But looking back on the life of Andrew Carnegie, one finds that it is story of multiple personalities: On the way up, he was nasty as can be to his workers and his competitors. Once on the top, he has a benevolent side to his personality. So, unconvincingly, I think, the author makes the pitch that we can hope to have many more Andrew Carnegies emerge from Richistan.
But I don't find that this is a convincing pitch. It is what it is. The super rich CAN form their own country in many ways. They CAN call their own shots. They are under little pressure to spread their wealth around benevolently, and they are infamous for using their money to influence politicians who can help them make even more money. If there is a saving grace to all this, it is infrequent that children of the super rich want to work as hard or be as prominent as their parents. Not many have the same fire in the belly.
So, in the end, I do not think this book reaches a thesis convincingly. But it is still worth a read.
Top reviews from other countries
Page Seven: The distinctions that are made between 'Lower Richistan', 'Middle Richistan', and 'Upper Richistan.'
Chapter One: Butler Boot Camp (Pages Thirteen To Thirty-Five): Fascinating details are discussed around the 'Butler Bootcamps' opening up across the U.S. A high number of these jobs are being filled by women. Another fascinating detail: A butler can start out making anywhere from $80,000 to $120,000 due to a shortage of qualified hires to meet the demand.
Chapter Eleven: Aristokids (Pages Two-Hundred and Nineteen To Two-Hundred and Fifty) Information is discussed on 'bootcamps' that teach wealthy children how to inherit and/or handle the riches made by their parents.
'Richistan' by Robert Frank is most likely to be enjoyed by those who are curious to know about self-made millionaires.








