Edward Conard

Top Ten New York Times Bestselling Author

  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “Unintended Consequences is far smarter and more thought-provoking than most economics written for the general public” - Greg Mankiw, Harvard University, Former Chairman of the Council of Economic Advisors
  • “Unintended Consequences is full of substance, it is one of the must-read books of the year, and once I finish it I will be giving it a second read through right away.” - Tyler Cowen, Professor, George Mason University
  • “…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
  • “Unintended Consequences offers deep and well-argued analyses on almost every issue.” - The New York Times
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
Upside of Inequality Oxford Unintended Consequences

AI Summary. S&P 500 companies account for 18% of total US employment, 21% of total US capital expenditure, roughly half of economy-wide corporate profits, and less than half of outstanding corporate debt. Privately owned firms account for almost 80% of job openings, and 81% of firms with revenues above $100m are private.

Torsten Sløk, Rajvi Shah, and Shruti Galwankar Apollo
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While 81% of American firms with revenue greater than $100mm are private, S&P 500 firms made up over half of economy-wide corporate profits at the end of 2025, while representing 18% of the workforce.

How much of the US economy do public companies represent?

Core argument: Employment at S&P 500 companies accounts for 18% of total US employment, and their capital expenditures make up 21% of total US capex.

Most of the time in financial markets is spent on discussing Nvidia, Apple and Coca-Cola, but these firms and the rest of the S&P 500 companies only make up a very small part of the US economy. For example, employment in S&P 500 companies is only 18% of total US employment. Similarly, capex by S&P 500 companies is only 21% of total capex in the US economy. [Notable] facts about public markets and private markets: [One] employment in S&P 500 companies is 18% of total US employment. [Two] employment in firms with more than 500 employees is 24.9 million, and total US employment is 160 million. [Three] privately owned firms account for almost 80% of job openings. [Four] 81% of firms with revenues greater than $100 million are private. [Five] Less than half of all corporate debt outstanding is from S&P 500 companies. [Six] S&P 500 profits make up roughly half of economy-wide corporate profits. [Seven] Capex by S&P 500 companies is 21% of total capex in the US economy. Bottom line: Public markets are a small part of the overall economy.

Takeaways by Macro Roundup® AI

  1. Employment at S&P 500 companies accounts for 18% of total US employment, and their capital expenditures make up 21% of total US capex.
  2. Privately owned firms account for almost 80% of US job openings, and 81% of firms with revenues above $100 million are private.
  3. S&P 500 companies account for roughly half of economy-wide corporate profits and less than half of all corporate debt outstanding.

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  • The Economic Divide Between Big and Small Companies Is Growing — High inflation, more cautious consumers, and tariffs are weighing on small-business earnings and prompting cutbacks, as smaller firms are less able than larger ones to withstand economic headwinds. Private firms with fewer than 50 workers have steadily shed jobs over the past six months.
  • Long-Term Shareholder Returns: Evidence From 64,000 Global Stocks — A study of about 64,000 global stocks estimates net global stock market wealth creation of $75.7tn, with returns highly concentrated: the top 159 firms (0.25%) account for half of net wealth creation and the top 1,526 (2.39%) account for all of it. Fewer than half of stocks beat one-month US Treasury bills, 42.6% of non-US and 44.8% of US stocks.
  • Which U.S. Stocks Generated the Highest Long-Term Returns? — Of the 29,078 U.S. common stocks in a database spanning nearly a century, 51.6% had negative cumulative returns, while 17 stocks returned more than 5m% — led by Altria at 265m%. Those top performers averaged annualized returns of just 13.47%, underscoring the value of time invested.
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