Economists Owen Zidar and Eric Zwick's research, commissioned by the Treasury in 2014, reveals a class of "Main Street Millionaires" in America whose wealth often goes unnoticed. These are private business owners such as auto dealers, contractors, and even beer distributors, who have an average wealth of around $25 million. Their influence on the US economy and politics is considerable, despite not being as publicly visible as billionaires like Elon Musk or Jeff Bezos.
Zidar and Zwick, authors of "The Everywhere Millionaire: Who Is Really Rich in America and How They Got There," found approximately 3 million such business owners. They emphasize that while billionaires like those on the Bloomberg Billionaires Index, worth roughly $7 trillion combined, grab headlines, they represent only a tiny fraction of America's wealthy. In fact, roughly 5 million households hold at least $5 million in wealth, with their combined assets exceeding 13 times that of the Forbes 400.
These "stealthy wealthy" individuals typically build their fortunes through hard work and ownership of brick-and-mortar businesses, not necessarily through Wall Street or Silicon Valley ventures. A significant factor in their wealth accumulation is the use of "pass-through" businesses (e.g., LLCs, sole proprietorships). These structures allow business profits to flow directly to the owner's personal tax return, avoiding corporate double taxation and often enabling a 20% deduction on income. This tax benefit has played a crucial role in their ability to amass wealth over the past 40 years, making them richer than they might have been otherwise. The research indicates that about three-quarters of these millionaires started their own businesses, and the vast majority did not inherit their wealth. The typical "everywhere millionaire" is 62, married, and often still actively involved in their business, driven by a desire for independence as much as for riches. An example cited is Dick Portillo, who started a hot dog stand with a $1,100 investment and grew it into a chain he later sold for $1 billion.
