U.S. Congress: The Millionaires' Club

If you want your kids to become millionaires, forget careers as entrepreneurs, software designers, engineers, bankers or even hedge fund managers.  The ticket to status and wealth is the Congress of the United States.  Today the median net worth of a member of Congress is $1.02 million.

The average person's net worth looks puny by comparison.  The latest figures show the median household wealth for the average American is $81,450.   The majority of the members of Congress--271 of the current 533 members--are millionaires.  Not bad for working 140 days in Washington.

While the median net worth of an American family has dropped one-third since 2007, the average member of Congress has done better. Senators' median net work climbed from $2.3 million to $2.8 million, while house members had to settle for an average of $843,507, up from $708,500.

Those numbers were furnished by the non-partisan Center for Responsive Politics.  Their data is obtained from an analysis of lawmakers' financial statements filed annually with the Clerk of the House.  The reports are required under The Ethics in Government Act of 1978.

To be fair, some members of Congress arrive with suit pockets stuffed with money.  For example, Rep. Darrell Issa, a Republican from California, has a net worth of $448.2 million, earning him the title of the wealthiest member of the cozy Washington club.

However, Issa earned his fortune by starting a company that manufactured car alarm and theft systems.  He served as chief executive officer of the firm before he ran for the House of Representatives.  More lawmakers are launching their Congressional careers as millionaires.

The total wealth of the 533 members of Congress was a staggering $4.3 billion, according to financial filings from 2013.  That is the equivalent wealth of more than 53,000 typical households.  Is it any wonder voters criticize their members of Congress for being out-of-touch with ordinary people?

OpenSecrets.org, a non-partisan watchdog organization, began publishing an annual report on lawmakers' net worth in 2006.  Members collective wealth has increased in every single year except in 2008 when the economy nosedived into the abyss.  Only Warren Buffet has done better.

Part of their secret is investing in the right stocks.  At least 50 members of Congress have parked millions of dollars in General Electric, Wells Fargo, Microsoft, Procter and Gamble, Bank of America, JP Morgan Chase and Apple, Inc.  Surely these investments don't influence their votes.

Perhaps, American investors should fire their financial counselors and just mimic the portfolios of members of Congress.  One study a few years ago uncovered the fact that lawmakers' stock portfolios on average beat the market by 10 percent.

Senators and House members draw hefty salaries, but they are not getting rich on their Congressional earnings.  Senators' and House members' published salaries are $174,000 per year.  The Speaker of the House is paid $223,500, while majority and minority leaders pull down $193,400.

Still that means your representatives earn more than 97 percent of American workers.

However, there are a host of perks most Americans have no idea exist. For instance, lawmakers get free hair cuts, parking, access to an exercise facility and subsidized meals in the members-only legislative dining room. Few Americans enjoy that kind of on-the-job coddling.

In addition, they receive allowances for new office furniture and overseas trips, often with spouses, paid for by taxpayers.  The allowances aren't chump change.  In 2014, allowances averaged $1.25 million per member. The taxpayers picked up the annual tab of $554.3 million.

The salaries, expenses (including travel) and allowances provided to legislators cost the American taxpayers $4.66 billion in a single year. That amount includes the permanent staff for the members and reflects pension costs.  Most corporations' annual expense budgets pale by comparison.

Lawmakers who serve only a single term are guaranteed a pension equal to 12.5 percent of their salary at age 62.  That is unheard of in private industry.  Former Speaker of the House John Boehner retired this year with an estimated annual pension of $85,000 for life.

Businesses, unions and organizations spread their money like manure for Congressional access.  In the last five years, just the 200 most politically active corporations in the U.S. spent $5.8 billion for lobbying and for campaign contributions to keep members' outstretched palms greased.

The gravy train never stops for Washington's elite.  Americans in survey-after-survey express outrage about the corrupt system.  But every election voters return the same politicians for another term.   Nothing will change as long as the entrenched  millionaire crowd is in charge.