At The Money: Who Is Wealthy in America, and How Did They Get Rich?
Summary
Princeton and Chicago professors Owen Zidar and Eric Zwick discuss their book "The Everywhere Millionaire," revealing that wealth in America is far more widespread and concentrated in unglamorous pass-through businesses than previously thought. Using unique IRS data, they show that 3 million private business owners hold wealth exceeding the Forbes 400, debunking the myth that riches are limited to tech and finance hubs. The episode explores how the 1986 tax reform fueled this growth, why failure is a viable path in the US, and how these local owners wield significant political influence.
Topics discussed
Sponsors: ChatGPT Work, Mastercard, and Cincinnati Insurance
Introduction: Who holds America's wealth?
Guests and the origin of the IRS/Treasury data project
Comparing the new database to Federal Reserve surveys
The 'Everywhere Millionaire' concept and wealth distribution
Unglamorous businesses and the visibility of wealth
Yacht data and identifying specific business owners
Earn vs. Own: Labor income vs. business ownership
The rise of pass-through businesses and tax advantages
Impact of 1986 tax reform on wealth and top incomes
Survivorship bias and the average outcome for founders
Cultural attitudes toward failure in the US vs. Europe
Wealth building: Slow growth vs. Silicon Valley speed
Political influence of local business owners
Industry disruption, pivoting, and luck in entrepreneurship
Advice for young entrepreneurs and buying retiring businesses
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Sponsors: ChatGPT, Insurance, IBM, and Michigan
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