Weekend Listen: There's a Mind-Boggling Number of Rich People in America
Summary
Tracy Alloway and Joe Weisenthal interview Owen Zadar and Eric Zwick, authors of "The Everywhere Millionaire," to explore how pass-through entities drive American wealth. The authors detail their decade-long effort to link IRS tax data, revealing that millions of mid-market business owners, not just tech billionaires, hold significant wealth. They discuss industries like auto dealerships and beverage distribution, highlighting how regulatory protections and ancillary services create regional monopolies. The episode contrasts these active, often blue-collar entrepreneurs with passive capital…
Topics discussed
Sponsor segments: IBM AI and Cincinnati Insurance
Introduction to the episode and guests
Defining pass-throughs and the hidden wealth in America
The challenge of linking messy IRS tax data
Explaining S-Corps and the rise of pass-through entities
Findings: Mid-market regional businesses dominate wealth
Sponsor segments: Suno, Edward Jones, and 4imprint
Case study: The wealth of Florida car dealers
Barriers to entry and franchise protections in auto sales
The beer distribution industry and regulatory protections
Contrasting active business owners with passive capital
The psychology of wealth and the 'Everywhere Millionaire'
High-profit industries: Doctors, dentists, and search funds
Sponsor segments: Bloomberg Tech Minute and 4imprint
How S-Corp tax benefits work for private practice owners
Political influence of pass-through owners and tax reform
The role of private equity and search funds in wealth transfer
Geography, entrepreneurship, and the labor share of income
Why owner share of profits is rising and worker pay is lagging
Conclusion: The true nature of American wealth and inequality
Outro and final sponsor segments
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