The text discusses the findings of economists Owen Zidar and Eric Zwick regarding the nature of wealth in the U.S., as detailed in their book “The Everywhere Millionaire.” They reveal that many wealthy individuals in America are not technology moguls or finance tycoons, but rather everyday business owners like dentists and HVAC contractors.
Key Points:
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Stealthy Wealthy: Zidar and Zwick term these individuals “stealthy wealthy,” highlighting that they often accumulate wealth through consistent hard work and owning traditional businesses.
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Wealth Statistics: Approximately 5 million U.S. households have a net worth of at least $5 million, dwarfing the wealth of the top names on the Forbes list.
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Path to Wealth: Most of these millionaires derive their riches from “pass-through” businesses, benefiting from favorable tax structures that allow them to avoid double taxation on corporate income.
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Demographics: The typical millionaire is characterized as being around 62 years old, likely married, and more often a college graduate. Notably, about three-quarters of these millionaires started their own businesses.
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Desire for Independence: Many wealthy business owners prioritize freedom and independence over simply the accumulation of wealth.
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Impact of Technology: Despite the rise of AI, the demand for tangible solutions in everyday life ensures that opportunities for wealth-building will persist.
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Contrast to Other Studies: Their research draws a parallel to the book “The Millionaire Next Door,” suggesting that while these millionaires may indulge in their success, they primarily stem from traditional, hands-on business ventures.
This research offers a broader perspective on wealth in America, illustrating that many thriving individuals are often found in traditional industries rather than glamorous sectors.
