So, you’ve been President of the United States. How do you do earn a living after having the most powerful job on earth?
The answer isn’t as straightforward as you might think. In the majority of cases, it’s not at all realistic for them to return to the occupation they held prior to the presidency. For example, Dwight Eisenhower couldn’t just resume his Army career after his two-term presidency.
The level of poverty some of the founding presidents experienced can be surprising: both James Monroe and Thomas Jefferson were ‘land rich and cash poor’. Monroe was eventually forced to move to New York to live with his daughter in 1831. Jefferson had to sell his book collection to the Library of Congress to raise cash.
Prior to 1958 presidents received no pension. In fact, the spectacle of a former president going broke, as Harry Truman experienced, was the catalyst to passing a law granting pensions to ex-presidents to protect the ‘dignity of the office’.
But didn’t they make great money while they were president? Not really. Congress sets the salary and benefits for the president. It’s been changed only 5 times in our 235-year history. George Washington made $25,000 a year as president. Bill Clinton made $200,000 in 1998. Joe Biden earns $400,000 a year. In modern times, that’s not a lot of money when compared to athletes, entertainers, and CEOs.
Yes, former presidents get a pension now: $210,700 per year, same as a working cabinet member. Plus, Secret Service protection for life, office expenses, etc.
So what did they do to make a living? Starting in the 20th century, presidents mostly made money by writing books and giving speeches. Doing much more was considered ‘undignified’; it wasn’t appropriate to ‘cash in’ on the office.
All that changed in a big way with Gerald Ford.
Ford was a 25-year member of Congress who ascended to the Vice Presidency when Spiro Agnew was forced from office for criminal conduct. Richard Nixon, embroiled in the Watergate Affair, needed Ford for his squeaky-clean image and ease of gaining Senate approval. Months later, Nixon resigned, elevating Ford to the presidency. Ford spent 30 months in office, losing to Jimmy Carter in 1976.
Gerald Ford wasn’t wealthy, but he did want financial security.
His first decision was to endorse a collection of medals depicting 100 significant events in presidential history. At the time he accepted the endorsement fee, he said: “I feel totally justified in doing it.”
But that was just the beginning. Ford became a hot commodity, sought after for positions on corporate boards of directors, consulting contracts, plus the usual book deals and speeches.
In a two-year period, he joined 8 different boards, many of which also came with lucrative consulting contracts. He claimed to refuse many who approached him and did not join any defense contractor boards. In 1986 he earned over $500,000 from these board seats, made 30 speeches at $15,000 a pop, and took in his pension of $153,000.
While other living ex-presidents such as Carter and Nixon stuck to writing books and refused all offers of board seats, Ford claimed a ‘clear conscience’ in pursuing these opportunities. He broke the mold and set the precedent for future presidents to follow similar paths.
Today, ex-presidents such as Bill Clinton and Barack Obama earn tens of millions of dollars on book deals alone. Clinton went heavy on the speaker’s circuit, earning $200,000 a speech, making many millions each year. Ronald Reagan made $2 million for one speech and visit to Japan just 10 months after his retirement.
To be fair, Ford and most former presidents such as Jimmy Carter, George H.W. Bush, Bill Clinton, and George W. Bush also support charities and global relief efforts with their time and influence. But it seems our media – driven, pop culture world can’t get enough of these men, no matter their political party. They’ve reached the pinnacle of influence and are able to command deals that might make our Founding Fathers scratch their collective heads as to the financial heights the presidency can lift a man.
The olden days of retiring to a quiet life of leisure seems quaint now. Gerald Ford broke down those walls with a path – clearing clarity for his successors to follow. Safe to say, our ex-presidents no longer worry about paying the bills. They just have to worry about being perceived as greedy and foregoing the ‘dignity of the office’.
Interested in learning more about the presidents? Visit the Carolyn & James Millar Presidential Gallery on the upper level of the Booth Western Art Museum. The gallery features original letters and photographs of every U.S. president. Learn more at www.boothmuseum.org.
