The Crucial Difference Between High W2 Income and Equity

Fairfax (VA) and Montgomery (MD) counties are routinely at or near the top among U.S. counties on the matter of per capita income. The politically focused use the latter for political purposes. Get it? Federal government workers and workers adjacent to the federal government earn a lot of money.

The income statistics are disturbing, but they’re also misleading. What’s left out of these county measures of income is that they gloss over a more important truth: rare is the W-2 earner who gets rich from those earnings. Income is income, while true wealth of the multiple millions and billions variety is attained through equity, not income. Looked at in a wealth sense, Fairfax and Montgomery aren’t nearly as prosperous as is assumed.

 

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