The Quiet Wealth Makers in America
· food
The Quiet Wealth Makers
A new book by economists Owen Zidar and Eric Zwick sheds light on millions of Americans who’ve built wealth through hard work, not stock market windfalls or tech entrepreneurship. These “everywhere millionaires” are small business owners – dentists, HVAC contractors, beer distributors – who have amassed fortunes through their own efforts.
Zidar and Zwick’s research, which examines Treasury and IRS data, reveals approximately 5 million households with combined wealth exceeding $65 billion. This is more than 13 times the total wealth of the Forbes 400, often considered the epitome of American success. These everywhere millionaires aren’t just wealthy; they’re also far more numerous and widespread than many people might expect.
Their success defies conventional wisdom about wealth creation in America, which tends to associate it with tech moguls, hedge fund managers, and other high-fliers who’ve made their fortunes through luck or savvy investing. However, Zidar and Zwick’s research shows that these stealthy wealthy individuals are more representative of the American Dream than often given credit for.
One notable example is Dick Portillo, who built his hot dog empire from scratch with a $1,100 investment. His story highlights the power of hard work and determination, as well as the importance of being one’s own boss. Many everywhere millionaires share this sentiment, valuing independence above all else.
Critics argue that pass-through businesses providing tax benefits to their owners exploit loopholes and allow wealthy individuals to avoid paying taxes. Zidar acknowledges these concerns but maintains his research focuses on understanding the broader economic phenomenon rather than justifying specific tax policies.
The study’s implications are far-reaching, challenging assumptions about wealth creation in America. As Zwick notes, “the prevailing narrative is very pessimistic relative to our reading of the data.” By highlighting the success stories of everywhere millionaires, we’re reminded that entrepreneurship and hard work remain essential components of the American Dream.
Zidar believes artificial intelligence will create opportunities for building wealth, while some worry it may displace jobs or exacerbate income inequality. Zwick sees AI as a catalyst for new forms of entrepreneurship and innovation.
The everywhere millionaires’ story offers a valuable lesson: success is not solely the domain of the tech-savvy or financially fortunate. It’s also a testament to human ingenuity and determination in creating wealth through tangible, problem-solving endeavors. As we move forward into an increasingly uncertain economic landscape, it’s essential to celebrate these quiet wealth makers who embody the true spirit of American entrepreneurship.
Their success stories also raise concerns about tax fairness and economic inequality. The everywhere millionaires’ phenomenon is both a cause for celebration and a reminder that there’s still much work to be done in ensuring everyone has an equal opportunity to build wealth in America.
Reader Views
- TKThe Kitchen Desk · editorial
While Zidar and Zwick's research highlights the oft-overlooked small business owners who've built wealth through hard work, it's worth noting that these everywhere millionaires often operate in industries with thin profit margins, which can leave them vulnerable to economic downturns. As the next recession looms, policymakers must consider not just tax policies but also ways to support these entrepreneurs during times of financial stress, ensuring their successes are sustainable and don't come at the expense of others' livelihoods.
- PMPat M. · home cook
These everywhere millionaires make me wonder if our country's tax code is really as progressive as we think it is. Zidar and Zwick's research shines a light on this quiet wealth, but I'm skeptical about their assertion that their study focuses solely on understanding the economic phenomenon. It's hard not to see the benefits of pass-through businesses as a thinly veiled attempt to reduce corporate tax rates further. What about the impact on small business owners who don't have the same financial resources or access to tax loopholes?
- CDChef Dani T. · line cook
It's about time we give some love to the real wealth makers in this country - small business owners who grind every day to build their empires from the ground up. What I find most interesting is that many of these "everywhere millionaires" aren't just accumulating wealth, but also creating jobs and driving local economies. However, we can't ignore the elephant in the room: the tax benefits pass-through businesses receive are a double-edged sword - they incentivize entrepreneurship, but also create an uneven playing field for larger corporations and individual taxpayers who don't have the luxury of exploiting loopholes.