Connect with us

Business

I’ve helped some of New York’s wealthiest ramp up their giving. Zohran Mamdani’s rise reveals the urgency — and opportunity — for all of us to meet the moment

Published

on



Zohran Mamdani’s populist victory in New York’s mayoral primary is a local tremor signaling a national earthquake. While pundits dissect the political implications, it’s important not to miss the signs of a deeper societal dynamic, one articulated with stark clarity by Mamdani’s fellow democratic socialist Bernie Sanders: “Take on the billionaire class. Take on the oligarchy. That’s how you win elections.”

This sentiment is not confined to the left, and the strategy doesn’t work only in New York. Populists on the right and in blue but smaller cities echo a similar formula, railing against a “cosmopolitan elite” and the “party of Davos,” who they argue have globalized the economy to their own benefit while leaving communities behind.

If Americans are divided on social issues, they are increasingly united in their antipathy toward those at the very top of an unequal economy rivaling the Gilded Age. This is the combustible force fueling upsets of establishment leaders on both sides of the aisle. The revolting social media cheers following the murder of United Healthcare’s CEO on a Manhattan street, as well as the success of anti-elite entertainment like HBO’s Mountainhead, are cultural signposts of this profound dissatisfaction.

Looking at the data

The data confirms the imbalance the public is rebelling against. The wealthiest 10% of American households now own roughly 90% of all business equity, while half of all households own virtually none. This isn’t a static picture; it’s a widening chasm. From the late 1980s to the present, the wealthiest 1% of the population have seen their share of the nation’s wealth climb to 26%. Conversely, the bottom 80% have experienced a decline, with their wealth share dropping from 40% to a mere 30% during the same period. We can also see this playing out with the number of ultra-high-net-worth (UHNW) individuals in the U.S. swelling from just over 101,000 in 2020 to nearly 148,000 in 2023, and their collective wealth skyrocketing from $11.3 trillion to $17.1 trillion.

Yet, as this wealth has concentrated, philanthropic giving from the growing group of UHNW individuals and families has remained flat at approximately $85 billion annually. This means their rate of giving has actually declined, from about 0.75% of their wealth in 2020 to just 0.5% in 2022. This vast, under-tapped reservoir of private capital could be a powerful engine for change.

The stakes are frightening. Historian Walter Scheidel, in his seminal work The Great Leveler, delivers a grim warning from the past. Throughout history, he finds, the immense gaps between the rich and everyone else have rarely been narrowed by peaceful reform. Instead, the great compressions of inequality have been driven by what Scheidel calls the “Four Horsemen”: mass-mobilization warfare, transformative revolution, state collapse, and catastrophic pandemics. If we fail to proactively build a more equitable distribution of economic gains, history teaches that violent shocks may do it for us.

Action is essential

This is where a new form of voluntary action by the ultra-wealthy becomes essential. Crucially, some of the people best positioned to chart this new path are the very ones who have reached the pinnacle of the current system. In the U.S., the vast majority—nearly 80%—of individuals with a net worth over $30 million are self-made, having built their fortunes in their own lifetimes, very often through business ownership. These are entrepreneurs who understand risk, see opportunity, and know how to build things that scale. This uniquely American entrepreneurial class has accumulated not only immense financial wealth but also substantial social, political, and intellectual capital.

Meaningful giving involves mobilizing all these forms of abundance in service of others. It means deploying networks, expertise, and influence right alongside financial investments. For an entrepreneur, this is a natural extension of their life’s work—drawing on the strategic, risk-aware mindset that built a company to now tackle an urgent societal challenge. This is the heart of “catalytic philanthropy,” an approach that brings all of a person’s assets to bear and, in doing so, creates both profound social impact and a deep sense of personal fulfillment. Three concrete opportunities to deploy capital right now show what this looks like in practice:

1. Pre-distributing the Gains of Automation. The rise of artificial intelligence is not a distant threat; it’s a present reality that could negatively impact over 110 million U.S. workers, or two-thirds of the workforce, while concentrating economic gains even more narrowly. A recent study by Telescope and Gallup found that while 99% of Americans have used an AI-enabled product in the last week, most have a negative view of AI’s potential impact on society, particularly on the availability of good jobs. In response, Telescope, an organization dedicated to ensuring new technology serves everyone, has developed the Telescope Tech Offset Program (TTOP). TTOP is creating a new financial instrument—an “AI Credit”—that allows businesses and government to pool resources and price the risk of tech-driven job transitions. Companies implementing AI that leads to displacement could purchase these credits, which would in turn fund a competitive marketplace of high-quality support services for workers, including retraining, education, and relocation assistance. This market-based mechanism directly answers the public’s call for both business and government to take responsibility for managing AI’s effects. A philanthropic investment in TTOP is a venture-style bet to build entirely new social and financial infrastructure, creating a self-sustaining system to manage one of the most profound economic transformations of our time.

2. De-Risking Social Innovation. Governments spend billions on social services but are often hesitant to fund innovative programs due to the political and budgetary risk of failure. Pay-for-Success (PFS) contracts, or Social Impact Bonds, flip this model by having government pay only for verified successful outcomes. A UHNW individual can catalyze these projects by supporting a proven intermediary organization. For example, Social Finance structured the $12.4 million Massachusetts Pathways to Economic Advancement Project, which funded vocational training and career coaching for over 2,000 English-language learners. The Commonwealth of Massachusetts only paid for the program after an independent evaluation confirmed it led to significant, measurable increases in participant earnings. Philanthropy was essential, providing grants for the complex structuring work and “first-loss” capital that de-risked the investment for institutions like Bank of America. An investor today could provide a grant to Social Finance to cover the feasibility work for a new project, or invest in one of their funds to support a diversified portfolio of these innovative contracts across the country.

3. Democratizing Business Ownership. The coming “Silver Tsunami” will see millions of retiring baby-boomer business owners exit their companies. Many will close or sell to private equity, which can lead to job losses and wealth extraction. In many cases, there is a better way: facilitate the sale of these businesses to their employees. Employee-owned firms are more resilient, and their workers have dramatically higher incomes and household wealth—a potent tool for closing racial and economic wealth gaps. The primary barrier is the lack of flexible financing for these transitions, as employees often can’t make a down payment. Catalytic capital is perfectly suited to fill this gap by investing in nonprofit intermediary funds, like the Employee Ownership Catalyst Fund, that provide the specific loans needed to get these deals done.

The Mamdani victory is the latest alarm sounding  for America’s richest and the political establishment they have propped up. The populist anger at a system perceived as rigged is not a passing storm; it is a change in the political climate. For America’s wealthiest citizens, this is a moment of decision. They can be the targets of that anger, or they can become vital partners in building a more equitable and resilient economy. By strategically deploying their personal resources—financial and otherwise—not as simple charity, but as catalytic, market-making investments, they have a profound opportunity to help build a more broadly prosperous American commonwealth, charting a course away from the four horsemen and the  grim specter of violence and social disintegration as the Great Leveler.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.



Source link

Continue Reading

Business

Hero bystander who tackled Bondi gunman praised by Trump, Ackman

Published

on



A bystander who rushed and disarmed one of the Bondi Beach attackers has won praise from leaders around the world, including US President Donald Trump and hedge fund billionaire Bill Ackman, who announced a reward program for community heroes.

Extraordinary footage of the civilian’s actions began circulating on social media on Sunday, shortly after two men, later identified as a father and son, started shooting into a crowd gathered to celebrate the first day of Hanukkah. The massacre has left at least 16 people dead in the worst terrorist attack in Australia’s history. 

Read More: Sixteen People Killed in Bondi Beach Hanukkah Terror Attack 

In the mobile-phone video, which has not been verified by Bloomberg News, one of the attackers is standing near a tree and firing. A few meters away, a crouched man emerges from behind a parked car. He grabs the shooter from behind and wrestles the weapon from his hands. Local media named the bystander as Ahmed el Ahmed, a 43-year-old father-of-two from south Sydney. He was shot twice and is being treated in the hospital, according to reports.

He was also soon lauded for his feat. Trump said at the White House that Ahmed had saved many lives and expressed “great respect” for him. In Sydney, New South Wales Premier Chris Minns went further, describing Ahmed’s wrestle with the shooter as “the most unbelievable scene I’ve ever seen.”

“That man is a genuine hero and I’ve got no doubt there are many, many people alive tonight as a result of his bravery,” Minns said at a press conference late Sunday.

Australian Prime Minister Anthony Albanese also praised Ahmed, and other bystanders who helped treat victims in the immediate aftermath of the shooting. 

“People rushing towards danger to show the best of the Australian character,” Albanese told reporters Monday. “That’s who we are, people who stand up for our values.” 

Pershing Square Capital Management’s founder Ackman called Ahmed  “a brave hero” and said his hedge fund firm would establish a reward program for people who had carried out similar acts.

The top donor to a gofundme page set up for the “hero” who tackled the shooter is listed as William Ackman, who gave $99,999. More than $170,000 has been raised so far. 

Salesforce Inc. Founder and Chief Executive Officer Marc Benioff also expressed his gratitude for Ahmed in a post on X.



Source link

Continue Reading

Business

A ‘new era’ in the housing market is about to begin as affordability finally improves

Published

on



Next year should mark a shift in the housing market after years of largely being frozen in place, according to Mike Simonsen, chief economist at top residential real estate brokerage Compass.

Home sales flatlined amid unaffordable conditions after rising demand collided with tepid supply growth, pushing up home prices. Would-be buyers became so discouraged that demand cooled and remains slow.

Prices are now becoming more favorable for house hunters, a trend that should continue in 2026 and change the narrative in the housing market.

“In the next era, that story flips. So sales are starting to move higher, but prices are capped or maybe down. Incomes are rising faster than prices, and so affordability improves for the first time in a bunch of years,” Simonsen told CNBC on Friday. “It’s not a dramatic improvement, but it’s the start of the new era.” 

His view echoes a recent report from Redfin, which also cited stronger income and weaker homes prices as it predicted a “Great Housing Reset” in 2026.

In addition to potential buyers giving up on finding an affordable home, sellers have been giving up on finding someone willing to buy at the price they want.

As a result, the number of homes that were withdrawn from the market jumped this year. In June, these so-called delistings shot up 47% from a year earlier.

Simonsen said listing withdrawals tend to be owner-occupied homes, meaning they could be latent demand as well as supply. That’s because two transactions would be needed: owners want to buy a new home but must sell their current one.

“In an environment where conditions improve a little bit, we actually estimate that that’s a representation of shadow demand—people that want to move, people that have delayed moves for maybe four years now,” he said, adding that there are about 150,000 such homeowners.

His housing market outlook for a new era of improving affordability doesn’t depend on a steep drop in mortgage rates. In fact, a plunge might spur so much demand that prices would overheat.

Simonsen expects rates to stay in the low-6% range, allowing sales to grow while also keeping home prices in check as more inventory comes on the market.

The price environment is already showing auspicious signs for prospective buyers. More than half of U.S. homes have dropped in value over the last year, but homeowners can still sell with a net gain as values are up a median 67% since their home’s last sale, accordion to data from Zillow.

And a separate report fromZillow found that homebuyers are getting record-high discounts. While the typical individual discount remains $10,000, desperate sellers are increasingly offering multiple reductions as muted demand leaves homes on the market for longer. As a result, the cumulative price cut in October hit $25,000.

“Most homeowners have seen their home values soar over the past several years, which gives them the flexibility for a price cut or two while still walking away with a profit,” Zillow Senior Economist Kara Ng said in a statement last month. “These discounts are bringing more listings in line with buyers’ budgets, and helping fuel the most active fall housing market in three years. Patient buyers are reaping the rewards as the market continues to rebalance.”



Source link

Continue Reading

Business

Attacker who killed US troops in Syria was a recent recruit to security forces

Published

on



A man who carried out an attack in Syria that killed three U.S. citizens had joined Syria’s internal security forces as a base security guard two months earlier and was recently reassigned amid suspicions that he might be affiliated with the Islamic State group, a Syrian official told The Associated Press Sunday.

The attack Saturday in the Syrian desert near the historic city of Palmyra killed two U.S. service members and one American civilian and wounded three others. It also wounded three members of the Syrian security forces who clashed with the gunman, interior ministry spokesperson Nour al-Din al-Baba said.

Al-Baba said that Syria’s new authorities had faced shortages in security personnel and had to recruit rapidly after the unexpected success of a rebel offensive last year that intended to capture the northern city of Aleppo but ended up overthrowing the government of former President Bashar Assad.

“We were shocked that in 11 days we took all of Syria and that put a huge responsibility in front of us from the security and administration sides,” he said.

The attacker was among 5,000 members who recently joined a new division in the internal security forces formed in the desert region known as the Badiya, one of the places where remnants of the Islamic State extremist group have remained active.

Attacker had raised suspicions

Al-Baba said the internal security forces’ leadership had recently become suspicious that there was an infiltrator leaking information to IS and began evaluating all members in the Badiya area.

The probe raised suspicions last week about the man who later carried out the attack, but officials decided to continue monitoring him for a few days to try to determine if he was an active member of IS and to identify the network he was communicating with if so, al-Baba said. He did not name the attacker.

At the same time, as a “precautionary measure,” he said, the man was reassigned to guard equipment at the base at a location where he would be farther from the leadership and from any patrols by U.S.-led coalition forces.

On Saturday, the man stormed a meeting between U.S. and Syrian security officials who were having lunch together and opened fire after clashing with Syrian guards, al-Baba said. The attacker was shot and killed at the scene.

Al-Baba acknowledged that the incident was “a major security breach” but said that in the year since Assad’s fall “there have been many more successes than failures” by security forces.

In the wake of the shooting, he said, the Syrian army and internal security forces “launched wide-ranging sweeps of the Badiya region” and broke up a number of alleged IS cells. The interior ministry said in a statement later that five suspects were arrested in the city of Palmyra.

A delicate partnership

The incident comes at a delicate time as the U.S. military is expanding its cooperation with Syrian security forces.

The U.S. has had forces on the ground in Syria for over a decade, with a stated mission of fighting IS, with about 900 troops present there today.

Before Assad’s ouster, Washington had no diplomatic relations with Damascus and the U.S. military did not work directly with the Syrian army. Its main partner at the time was the Kurdish-led Syrian Democratic Forces in the country’s northeast.

That has changed over the past year. Ties have warmed between the administrations of U.S. President Donald Trump and Syrian interim President Ahmad al-Sharaa, the former leader of an Islamist insurgent group Hayat Tahrir al-Sham that used to be listed by Washington as a terrorist organization.

In November, al-Sharaa became the first Syrian president to visit Washington since the country’s independence in 1946. During his visit, Syria announced its entry into the global coalition against the Islamic State, joining 89 other countries that have committed to combating the group.

U.S. officials have vowed retaliation against IS for the attack but have not publicly commented on the fact that the shooter was a member of the Syrian security forces.

Critics of the new Syrian authorities have pointed to Saturday’s attack as evidence that the security forces are deeply infiltrated by IS and are an unreliable partner.

Mouaz Moustafa, executive director of the Syrian Emergency Task Force, an advocacy group that seeks to build closer relations between Washington and Damascus, said that is unfair.

Despite both having Islamist roots, HTS and IS were enemies and often clashed over the past decade.

Among former members of HTS and allied groups, Moustafa, said, “It’s a fact that even those who carry the most fundamentalist of beliefs, the most conservative within the fighters, have a vehement hatred of ISIS.”

“The coalition between the United States and Syria is the most important partnership in the global fight against ISIS because only Syria has the expertise and experience to deal with this,” he said.

Later Sunday, Syria’s state-run news agency SANA reported that four members of the internal security forces were killed and a fifth was wounded after gunmen opened fire on them in the city of Maarat al-Numan in Idlib province.

It was not immediately clear who the gunmen were or whether the attack was linked to the Saturday’s shooting.



Source link

Continue Reading

Trending

Copyright © Miami Select.