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Ethan Trex
How Ex-Presidents and Prime Ministers Make their Money
by Ethan Trex - July 22, 2008 - 10:47 AM

Upon taking up residency in the White House, a president also assumes a tidy salary of $400,000 a year, plus extra cash for expenses. That’s certainly not the kind of change you’d find under most couch cushions, but it’s not such a princely sum that the president will be set for life when leaving office. While many leaders are either independently rich enough or old enough that they just retire after leaving office, others are desperate to make a buck or a pound. So how do ex-presidents and other former world leaders support themselves as they while away the autumn of their years?

The Very Broke Harry Truman:

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When Truman’s presidency ended in 1953, he headed home to Independence, Missouri, but there was a nagging problem: he didn’t have any money.  His business interests from prior to his political life hadn’t generated any sort of savings for him, and he thought that taken a corporate position or endorsing products would cheapen the presidency. His only income was a $112-a-month army pension, so he did what former presidents now do without thinking:  he sold his memoirs. Truman received a $670,000 deal for the two-volume memoirs, but after taxes and paying his assistants, he only netted a few thousand dollars on the project. Things got so dire that Congress passed the Former Presidents Act in 1958, which gave retired commanders in chief pensions of $25,000 a year.  At least his health insurance was eventually covered; when Lyndon Johnson signed Medicare into law in 1965, he presented President Truman and his wife, Bess, with the first two Medicare cards.

Jimmy Carter:

Picture 35.pngCarter famously rose to the presidency from humble roots as a Georgia peanut farmer, but when he assumed office he placed his business and farming issues in a blind trust to avoid any potential conflicts of interest. It was a noble act, but it didn’t play out so well for Carter; when he resumed control of his assets, he was a million dollars in debt. He needed dough, so he started writing. And writing. Although he’s known for his work with Habitat for Humanity and his willingness to go on global diplomatic missions, Carter is a shockingly prolific author of over 20 books. Some of his tomes are standard memoirs and political texts, but Carter’s also penned children’s books, a volume of poetry, a historical novel, and Bible-study guides.

Bill Clinton:

Picture 36.pngHillary Clinton may not have won the Democratic presidential nomination, but the Clinton family shouldn’t be standing in any bread lines in the foreseeable future.  Bill Clinton pulls in $250,000 to give a speech, which has been a fairly lucrative racket for him. A 2007 report in the British newspaper The Independent estimated Clinton’s earnings from speeches alone at somewhere in the neighborhood of $40 million since he left office six years earlier. Clinton also sold his memoir My Life to Knopf for $15 million, and he serves as an advisor for the private equity firm Yucaipa Companies, a post that has pulled in at least $12.6 million. When the Clintons released their tax data in April as part of Hillary’s campaign disclosures, they showed income of $109 million since leaving the White House.

Margaret Thatcher:

Picture 37.pngAlthough declining health has slowed her down lately, Thatcher was fairly busy after stepping down as Prime Minister in 1990. She remained in the House of Commons until 1992. She received the title Baroness Thatcher that year, which got her a spot in the House of Lords. Thatcher also penned a two-volume memoir, The Path to Power and The Downing Street Years, which hit the New York Times’ best-seller lists in 1993 and 1994. On top of that, she served as Chancellor of the College of William and Mary from 1993 to 2000 and penned the international relations text Statecraft:  Strategies for a Changing World in 2002. All of this work must have left Thatcher pretty set; after all, she has given Cambridge two million pounds to endow a chair in her name.

John Major:

Picture 38.pngThatcher’s successor as Prime Minister has had a decidedly more low-key life since leaving the post in 1997. As an avid cricket fan, he served as the president of the Surrey County Cricket Club from 2000 to 2001 and has been on the Committee of the Marylebone Cricket Club since 2005. He also joined the private equity firm the Carlyle Group’s European Advisory Board in 1998 and supposedly rakes in 25,000 pounds for each speech he gives on the lecture circuit.

Tony Blair:

Picture 39.pngLike Bill Clinton, Blair got a book advance that ensured he wouldn’t have to hit up any of his friends for a pound or two from time to time. In October 2007 the New York Times reported that Random House purchased Blair’s memoir for a staggering $9 million. Or rather, they purchased the rights to the memoir once it’s written; despite receiving the gigantic advance, Blair’s spokesman admitted that the former Prime Minister hadn’t gotten a chance to “put pen to paper” when he signed the deal. On top of the sweet advance, Blair’s also pulling in cash as an advisor on climate change for Zurich Insurance and as a senior advisor for JPMorgan, both of which have been reported as six-figure-a-year jobs. He’s also making 500,000 pounds for a series of speeches and will teach a course on faith and globalization at Yale this year.

Comments (13)
  1. Doesn’t Hillary have some fund to help her financially because she lost so much during her run for President? I think I read that Obama and his wife both contributed the max amount allowed.

  2. I dunno, if I earned $400,000 a year and received free housing, transportation, health care, etc. for four to eight years, I think I could put together a pretty good savings plan.

  3. i don’t know about completely free- i believe they have to pay the utilities/jet fuel costs, food costs (even for those stupid banquets), decorating fees, etc. but i certainly don’t think 400,000 a year is anything to sneeze at. that’s a lot more than i live off of a year. lol
    it’s kind of a shock that less than a hundred years ago they set up some kind of pension plan for the ex-presidents. i had always just assumed they were taken care of out of common courtesy as some kind of national “treasure” of some sort.

  4. The retirement benefits received by former Presidents include a pension, Secret Service protection, and reimbursements for staff, travel, mail, and office expenses. The Presidential pension is not a fixed amount, rather it matches the current salary of Cabinet members (or Executive Level I personnel), which is $191,300/year as of March, 2008.

  5. I sure wish we had a Thomas Jefferson, a Harry Truman or even a Dwight Eisenhower we could vote for this coming election. As it is we really have no good choices. Just my personal opinion.

  6. It just goes to show that persistence and desire lead to great things. Even those who are wealthy have to stay on top of their own game. You can’t really allow yourself to ever get too comfortable.

  7. How Ex-Presidents and Prime Ministers Make their Money | CommentURL.com

    \r\nWhile many leaders are either independently rich enough or old enough that they j

  8. I’m a die hard Republican but I do believe that if our president is in financial trouble because of his time in office (directly related not because he swindled it on bad investments or hookers) we should take care of them. I’m sure that this isn’t a problem anymore but for past presidents there is no reason we shouldn’t pony up some dough to help them out. I for one don’t want the president worrying about his or her finances, this would just bring us back to where there vetoing with there wallet and not the interest of the U.S. in mind. As far as there not being good choices this year for president I think we have two good choices. If they turn out to be bad choices Congres will make sure that there actions don’t hurt us to bad. Or did we all forget that congress was there since the media made it sound like Bush just made it all up as he went.

  9. I’ve read Jimmy Carter’s historical and he’d starve to death being an author of historical novels…IMO he needs to stick to peanuts….

  10. Doesn’t #41 still work for a KUWAITI Oil Co?
    C’mon, show some freakin guts.

  11. um, i think if presidents paid white house utility bills and jet fuel costs whenever they flew somewhere, they’d blow their 400K rather quickly, sue.

  12. What we pay our leaders of the greatest nation in the free world is pitiful. I just don’t get it when I see celebreties or sportsman getting 25 mill+ contracts for one year or one movie. Or someone getting the $400,000.00, that our President makes in one year, for one episode of a TV show.

  13. I read that when the Presidential pension was established with Harry Truman in mind, Hoover also took advantage of the pension. Not because he needed it, he just didn’t want Truman to be embarrassed for being broke. Kinda classy, when you think about it. It’s hard to imagine today’s politicians doing something just to save another fellow embarrassment.

    ReCaptcha: breathe Episcopal. Is that a command?

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