Understanding Wealth in America: A Historical Perspective

In his book How to Get Rich in American History: 300 Years of Financial Advice That Worked (& Didn’t), historian Joseph Moore explores how financial strategies have shifted across eras. Below, we break down key insights in a Q&A format.

What is the overarching lesson from Moore's research on wealth-building in America?

Moore emphasizes that there is no permanent formula for financial success in the United States. Instead, the methods that work depend heavily on the historical era. The most effective approach is to remain adaptable, blend multiple strategies, and avoid putting too much faith in any single 'secret to wealth.' History shows that the economic landscape is full of opportunities, but the best way to tap into them constantly evolves. For example, advice that worked for Baby Boomers—like staying at one job for 40 years and saving 10% in stocks—would have failed in nearly half of all historical time periods. So, flexibility is key.

Is it actually easier to get ahead financially today than in the past?

Yes, by many measures. Moore points out that past generations faced far harsher conditions. In the 1700s, going broke meant debtors’ prison for the whole family. In the 1870s, the average American owned only 1.5 shirts and worked 60 hours a week just to afford half a shirt. Insurance was almost nonexistent. As late as the 1970s, median income was 30% lower than today, adjusted for inflation. Now, Americans work fewer hours for more money, with significantly less risk. While some people today feel economic anxiety, historical data shows that upward mobility is higher than common belief suggests—6 out of 10 children born in poverty rise out of it.

How does actual social mobility in America compare to public perception?

Moore’s research reveals a surprising gap between perception and reality. Many think the American Dream is dead, but statistics show substantial movement. Of children born at the bottom, 60% climb out of poverty, with 40% reaching the middle class or higher. Even among the top 1%, 90% of grandchildren are not wealthy. This challenges the narrative that the rich stay rich. Historical examples, like the 1676 burning of Virginia’s capital over economic frustration or the 1980 headlines saying Baby Boomers would never retire, show that pessimism about opportunity has been common—but often wrong.

Why were Baby Boomers considered 'weirdly lucky' in financial terms?

Baby Boomers experienced a unique economic era that made their financial strategies appear universally successful. Many worked one job for 40 years, saved 10% in stocks, and retired comfortably. However, Moore notes that this particular combination only worked because of favorable historical circumstances—low inflation in the 1950s, rising stock markets, and strong pension systems. In contrast, if you had tried the same approach in half of other historical periods (e.g., during the Great Depression or stagflation of the 1970s), it would have failed to fund retirement. Thus, Boomers’ success was more about timing than a timeless rule.

What financial hardships did average Americans face in the 18th and 19th centuries?

Life was materially poorer and riskier. In the 1700s, bankruptcy could land not just the debtor but also their entire family in prison—a detail often omitted from popular stories like Hamilton. By the 1870s, the average person had just 1.5 shirts, meaning they literally did not own a complete second shirt. To afford the other half of that shirt required 60 hours of work per week. Insurance was in its infancy, so there was no safety net for a house fire, a spouse’s death, or lost income. Those conditions contrast sharply with today’s safety nets and average standard of living.

How has geographic mobility changed in the U.S. and why does it matter for wealth?

Moving to where opportunities exist has always been a strategy for getting ahead, but the ease of mobility has changed drastically. In the 1800s, one in three Americans moved every single year—but it was extremely difficult. Just crossing the Atlantic could take 30 days, and traveling across the country took the U.S. Army two months. Today, moving is far quicker and cheaper, allowing people to relocate for jobs, education, or lower cost of living. This flexibility is an advantage modern Americans have that most of their ancestors lacked, making it easier to chase economic opportunities.

What advice does Moore offer to those worried about their financial future today?

Moore advises against falling into either the 'Boomer trap' (assuming old methods always work) or the 'Doomer trap' (believing success is impossible). Instead, he suggests learning from history: stay adaptable, diversify your strategies, and don’t panic when someone claims to have found a permanent solution. Recognize that the current era offers more safety nets, higher incomes, and less risk than most previous periods. While no single rule guarantees wealth, maintaining flexibility and a willingness to relocate or change careers can help you mine the opportunities that each new era presents.