Economists Uncover "Everywhere Millionaires" Beyond Tech and Finance

Economists Eric Zwick, Owen Zidar, and Danny Yagan have identified a significant segment of wealthy Americans who are not the widely recognized billionaires in tech or finance, but rather "everywhere millionaires" deriving their fortunes from smaller businesses and professional practices. This discovery emerged from a multi-year project that began in 2014, when the researchers, then affiliated with the University of Chicago, Princeton University, and UC-Berkeley respectively, gained access to individual tax records and business filings at the U.S. Treasury Department. Previously, these datasets were kept separate by the Internal Revenue Service, preventing economists from linking business profits directly to individual owners. The researchers, who humorously referred to themselves as "tax ninjas," spent months developing methods to connect these disparate databases, a process that Zwick described as making the two systems "talk to each other."

Upon successfully linking the data, the researchers were surprised by the composition of the wealthiest Americans. Their analysis revealed that among individuals in the top 1% of income earners, doctors and auto dealers frequently appeared near the top of profit-earning categories from pass-through firms. This finding contrasted sharply with the public perception of wealth concentration, which often focuses on figures like Jeff Bezos or Stephen Schwarzman, prominent billionaires in e-commerce and private equity. The "everywhere millionaires" represent a more distributed form of wealth accumulation, often stemming from successful small to medium-sized enterprises and specialized professional services.

This research challenges the conventional narrative of the "American Dream," suggesting it is more broadly realized by a wider array of individuals than previously understood. The findings are detailed in Zwick and Zidar's new book, "The Everywhere Millionaire: Who is Really Rich in America and How They Got There." The book aims to redefine the public's understanding of wealth in the United States, moving beyond a singular focus on high-profile billionaires to acknowledge the substantial economic contributions and wealth generated by professionals and small business owners across the country. The researchers' work provides a more nuanced picture of economic success, highlighting the importance of diverse entrepreneurial and professional pathways in achieving financial prosperity.

The implications of this research extend to economic policy and public discourse surrounding wealth inequality. By demonstrating that significant wealth is generated outside of the traditional financial and technology sectors, the findings may encourage a broader range of policy considerations aimed at supporting small businesses and professional service providers. The study underscores the complexity of wealth distribution and the need for data-driven insights to accurately represent the economic landscape. The "tax ninjas'" dedication to overcoming data limitations has yielded a significant re-evaluation of who constitutes the wealthy in America and the diverse routes they have taken to achieve their financial standing.